Marshall Islands will issue a distributed cryptocurrency called Sovereign through an ICO later this year. It will be based on the SOV blockchain that uses the Yokwe framework that requires identification.
The Marshall Islands Parliament last Wednesday passed a law that could see the island become the first to issue world’s first legal tender as a cryptocurrency. Sovereign (SOV), as the digital coin is called, will be distributed and exchanged with other assets.
The island currently uses US dollars as its currency.
The President of the Republic of the Marshall Islands (RMI), Dr. Hilda C. Heine said,
“This is a historic moment for our people, finally issuing and using our currency, alongside the USD. It is another step of manifesting our national liberty.”
The government will issue the currency through an ICO, possibly later this year. Additionally, Marshall Islands residents will get a free allocation of the cryptocurrency.
It will be issuing on the SOV blockchain on which users will demonstrate and verify the source of funds. The blockchain uses the ‘Yokwe framework’ that requires identification and solves anonymity issues that affect adoption of Bitcoin cryptocurrencies. The government will then allow global investors to participate.
The crypto project is part of the overall E-Conomy vision seeking to use blockchain to run the cryptocurrency and securely record biometric IDs. The president also said the island would invest in efforts to save the world from climate change efforts.