The Republic of the Marshall Islands, located in Micronesia, intends to release for use the token Sovereign or SOV, in addition to the U.S. dollar. The act of creating its own cryptocurrency was adopted on February 26.
On the official channel Sovereign in Telegram States that “the Purpose of the law was to release a decentralized digital currency based on blockchain technology as legal tender of the Republic of the Marshall Islands”.
Order to issue Sovereign received Israeli startup Neema who will develop the underlying technology of the new cryptocurrency using a public Protocol named Yokwe.
This Protocol was developed in accordance with the international rule of “know your customer” (KYC). In addition, the new cryptocurrency will not be anonymous. To reduce the risk of financial crimes, the account will be tied to real, proven government personalities.
“We all dreamed of the day when the first country will launch a crypto-currency. As soon as we reach success, SOV will bring us several steps to a free, more liberal world. In this cash flow will leak instantly and cost-effectively,” he wrote in his Telegram channel representatives Neema.
As reported by the Ministry of Finance of the Republic of the Marshall Islands, the state of the cryptocurrency will be issued through the primary offering of coins (ICO).
The government intends to use the proceeds from the ICO to support the Treasury in anticipation of the termination of reparations from the United States. The United States paid the Republic of the Marshall Islands $30 million per year as compensation for the fact that he used the terrain as a testing ground for nuclear weapons in the 1940s and 1950s.
According to CTech, 70 percent collected in the ICO funds will be used to fill gaps in the budget, the appearance of which is expected after the termination of reparations payments. Ten percent will be spent on projects related to climate change and green energy, and the remainder of the funds will be distributed among the citizens of the Marshall Islands.
“This is a historic moment for our peoples — the release and use our own currency along with U.S. dollars. This is another step towards the manifestation of our national freedom.” — said the President of the Republic, Hilda K. heini (Hilda C. Heine).
Recall that the Republic of the Marshall Islands not the first state that asked the cryptocurrency to increase your budget. So the Venezuelan government announced the start of pre-sales Petro tokens.
However, in a press release, the Marshall Islands emphasized that the Sovereign is different from Petro, because the Republic is “a close ally of the United States,” and the price of the currency will be determined by the market, while the price of Petro is tied to oil.