The Marshall Islands made its own cryptocurrency, doing away with the US dollar in March, but is unclear as yet if the island’s banking system is ready to adopt it, reports The Verge.
Politically, the Marshall Islands (RMI) is a presidential republic in free association with the United States, with the US providing defence, subsidies, and access to US-based agencies such as the Federal Communications Commission and the United States Postal Service.
Although the new cryptocurrency, the sovereign (SOV), has now officially displaced the US dollar as the official currency, it appears likely that the country’s 53,066 population will continue to use the dollar until banks and credit companies put in place a framework for the currency’s use.
“As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form,” said David Paul, minister-in-assistance to the president of the Marshall Islands talking to Reuters earlier this year.
Hilda C Heine, the country’s president, was quoted in Finance Magnates as saying, “This is a historic moment for our people, finally issuing and using our own currency, alongside the USD. It is another step of manifesting our national liberty.” The new SOV will have multiple positives, she suggested:
“The RMI will invest the revenues to support its climate change efforts, green energy, healthcare for those still affected by the US nuclear tests, and education. In addition, SOV units will be directly distributed to citizens.”
Although the presale has not been announced officially as yet, the initial offering is reported to be capped at 24 million tokens as a precaution against inflation. The Marshall Islands now joins Venezuela which launched its own national cryptocurrency, the Petro, recently, mainly as a bridge across US sanctions, with US citizens under a presidential ban from investing in it. The bolivar is still in use in the hyperinflated nation.
Several governments, including China, Estonia, Iran, Sweden, and Russia have discussed plans for their own digital currency.
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