The government of the Marshall Islands wants to introduce its own crypto currency, the “Sovereign”. This was published this week by the government of the dwarf state via social media. A bill to this effect was passed on Monday, so that the way is now clear for the island currency. After Turkey and Iran, the Pacific state is the third country to respond to the successful launch of Venezuelan Petro by issuing its own currency.
First Petro, soon cryptosoft Sovereign?
The list of countries hoping to issue their own national cryptosoft currency in the future grows by one more member. The sovereign, which means sovereign or ruler in German, is to advance the financial interests of the Marshall Islands in the future like this Is Cryptosoft a Scam? Beware, Read our Review First. A corresponding draft law was passed on Monday, 26 February.
“The purpose of this law is the explanation and publication of a digital decentralized currency on basis of the Blockchain technology as public advertisement of the republic of the Marshall islands”, it says in the bill.
President Heine describes the project
The happy news was spread by the government of the dwarf state, which with only 72,000 inhabitants is one of the smallest countries in the world, via the state Telegram account.
“The fact that we are finally issuing our own currency and using it alongside the US dollar is a historic moment for our people. It is a further step to realize our national freedom”, said President Hilda Heine to Finance Magnates. The Marshall Islands do not have their own national currency. Due to their historical proximity and an association agreement with the USA, only US dollar notes are in circulation here. This is to be changed by the sovereign.
The technology behind the currency is to come from Israel. The start-up Neema wants to use public protocol data in order to keep the concern of criminal use to a minimum. In addition, accounts are to be linked with the government’s identification data, as reported by the Israeli tech news site CTech.
Marshall Islands: tax haven in the South Seas
Similar to Venezuela, the sovereign is to be issued as part of an Initial Coin Offering (ICO). The associated financial injection is likely to be welcomed in the island state. For in addition to declining tourism and a manageable production of tropical fruits, the domestic economy is limping.
“The government of the Marshall Islands will invest the proceeds to advance its efforts against climate change, for green energy, health care as well as towards those affected by the US nuclear tests and education. The sovereign is to be distributed directly to the citizens,
The difficult economic situation in the country is also related to the tax situation. The islands are regarded as tax havens and are blacklisted by the EU Commission. Only the US compensation for the nuclear bomb tests in the region literally keeps the islands threatened by climate change afloat. Every year, the USA sends up to 62.7 million US dollars to the Pacific.