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#CryptoCurrency

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Marshall Islands Official Explains National Crypto With Fixed Supply Disclaimer Sept. 4, 2019 4:06 p.m. UTC: This article previously stated that the Marshall Islands had launched its   #cryptocurrency  . It has been amended to more accurately reflect the news development. An official from the   #MarshallIslands   has published an essay explaining the country’s national cryptocurrency project ahead of the Invest: Asia 2019 conference. The issuance of the Marshallese sovereign (SOV) was discussed in an essay by The Honorable David Paul — Minister In-Assistance to the President and Environment of the Marshall Islands — published by Coindesk on Sept. 4. “Connected to the global financial system on its own terms” The Marshall Islands had passed a Sovereign Currency Act in 2018, declaring its intent to release its new national digital currency. The nation, which has been independent since 1979, has until now been using the United States dollar as the official currency for all payments, debts, public charges, taxes and dues. The state’s reliance on U.S. grants is estimated to total around $70 million each year, as reported earlier this year. In his essay, Minister Paul outlines that the Islands’ choice to issue a second legal tender based on   #blockchain   technology was based on a conviction that centralized solutions are not workable in a country of a little over 50,000 people spread across over 1,000 Pacific islands. Beyond decentralization, blockchain offers the country the possibility of having compliance “baked into the currency protocol itself,” — in the minister’s words — “while maintaining privacy for individuals.” The technology, he notes, allows the state to automate much of its compliance obligations, lowering the costs associated with existing systems and thus helping it take a more proactive role in the global fight against money laundering and financing of terrorism. Approved entities — such as banks or exchanges — will be tasked with verifying the identity of SOV users, thereby closing anonymity loopholes.


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