After Venezuela, Marshall Islands announce their own cryptocurrency Sovereign (SOV), Sovereign circulated as legal tender along with the U.S. dollar.
Legislators for the Pacific island nation passed the Declaration and Issuance of the Sovereign Currency Act 2018 in February 26th.
May-22-2018 yesterday Sovereign cryptocurrency has been signed into law as the Marshall Islands – a sovereign state and UN member – has put in place a bill to make its national legal tender its own cryptocurrency.
Their new national cryptocurrency is called the Sovereign (SOV) and will be the official legal tender for businesses and the 53,000 citizens of the Pacific island.
Crypto trader and host on CNBC Africa Ran Neuner – explained that the move for the tiny nation was significant because it means that financial institutions such as banks and Visa will have to accept the SOV as it is now the legal tender of a sovereign nation:
If a sovereign nation, not under sanctions, part of the UN has a legal tender in their country, the banks must support it. Here are some docs showing that Marshall Islands meets all criteria and has signed a bill in parliament creating the world’s first sovereign crypto currency pic.twitter.com/Cf4eaJuODT
— Ran NeuNer (@cryptomanran) May 22, 2018
The Marshall Islands is partnering with Neema, an Israeli financial technology startup, to issue the SOV, and the project was the idea of CEO Barak Ben-Ezer who sought out nations without their own national currency for crypto adoption.
Venezuela, meanwhile, has gone ahead with a new digital token called the Petro, backed by oil. It raised about $735 million on the first day of its presale but is not expected to attract significant investment.
While some might question whether the idea of a national, centrally-controlled currency is really in keeping with the spirit of decentralization that motivates much of the cryptocurrency world, this new adoption – and its suggested ramifications for the banking world – are no doubt an interesting development for the space.