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Symbol for the SOV.

Sovereign Currency Act of 2018 is a statute of the Legislature of the Marshall Islands which was passed on February 26, 2018. The Act creates and issues a digital decentralized currency (“ cryptocurrency”) that will be used as a legal tender of the Republic of the Marshall Islands (RMI). [1]

Sovereign Currency Act of 2018

The Sovereign Currency Act of 2018 creates and issues the Sovereign (SOV) its own cryptocurrency. [2] This would lower the dependence on the USD. [3] There are plans for a portion of the cryptocurrency's revenue to go towards radiation-related health care needs following nuclear tests from 1946 to 1958.[ citation needed]

Implementation

The Sovereign cryptocurrency was created through a partnership with Neema, a financial technology startup. [2] Neema will use “Yokwe” protocol to ensure anonymity while also linking each account with a verified government identity that is both encrypted and private. [4] The SOV will be issued by the Ministry of Finance and introduced through an initial coin offering (ICO) at a date yet to be announced. The number of SOV’s in circulation will start at 24 million and will grow by 4% each year. [5] RMI President Hilda C. Heine called the creation of SOV “another step of manifesting our national liberty.” [6]

Response

In September 2018, the International Monetary Fund (IMF) released a report warning the RMI not to launch its own cryptocurrency, the Sovereign, with primary concerns with cryptocurrency being a second form of legal tender, that the revenue from the ICO would be smaller than expected, and that proper governance on the cryptocurrency were not adequate. [7]

See also

References

  1. ^ Ejukaan, Jepilpilin Ke (26 Feb 2018). "Declaration and Issuance of the Digital Sovereign Act 2018" (PDF). Nitijela: The Parliament of the Republic of the Marshall Islands. Retrieved 29 September 2018.
  2. ^ a b Chavez-Dreyfuss, Gertrude (28 Feb 2018). "Marshall Islands to issue own sovereign cryptocurrency". Reuters. Retrieved 29 September 2018.
  3. ^ Keane, Jonathan (23 Apr 2018). "Inside the Marshall Islands' plans to launch its own legal tender cryptocurrency". The Next Web. Retrieved 29 September 2018.
  4. ^ "Marshall Islands to issue legal cryptocurrency "Sovereign"". EconoTimes. 6 Mar 2018. Retrieved 29 September 2018.
  5. ^ "crypto that is real money". Sov. Retrieved 29 September 2018.
  6. ^ "How the Marshall Islands envisions its national digital currency dubbed 'sovereign'". Pasifika Rising. 2019-02-18. Retrieved 2021-11-08.
  7. ^ "Republic of the Marshall Islands: 2018 Article IV Consultation - Press Release; Staff Report; And Statement by the Executive Director for Republic of the Marshall Islands". International Monetary Fund. 18/270. Sep 2018. Retrieved 29 September 2018.


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