- The country has limited the coin’s supply to prevent inflation.
- The new money will become a legal tender along with US Dollar.
The citizens of the Marshall Islands will soon have access to their own state-issued cryptocurrency known as ‘Sovereign (SOV)’. The total amount of coins in circulation will be limited at 24 million tokens to prevent inflation.
The new coin will become a legal tender in the country along with the US dollars. The government claims that SOV will close the loopholes exploited by criminals.
Notably, earlier this year the government of the Marshall Islands created “SOV Development Fund” to support the launch of the new coin. This Fund was said to be an independent and non-profit organisation governed by the board of seven directors. The government will appoint two directors.
SOV will be issued via ICO and act like regular money for everything from everyday purchases to paying taxes. The government insists that SOV is not anonymous.
“Every individual using SOV must be identified by an approved verifier of their choice, such as a bank or an exchange,” David Paul, minister-in-assistance to the president of the Marshall Islands commented.
The Marshall Islands is not the first country that attempts to launch a sovereign digital coin. Venezuela has alread launched one, while China and Russia are looking into creating their own cryptocurrencies do rival Bitcoin and Etherium.