The Republic of Marshall Islands has decided to go ahead and build its blockchain-based national currency, the Marshallese sovereign(SOV). An announcement was made during the Invest: Asia cryptocurrency conference in Singapore in which the next step regarding the cryptocurrency was discussed. The next step is to make the available currency visible to the public before it is circulated within the Marshall Islands.
The currency will be made available by a sale over a period of time through Timed Release Monetary Issuance(TRMI). These TRMI units will be released through auctions after an interval, and then these will be exchanged for the Marshallese sovereign once it is launched.
The funds will be stored, and they will be focused on solving the critical challenges faced by the Marshall Islands such as working towards the effects of climate change and taking care of the health crisis caused by the Bikini Atoll nuclear testing.
Environment Minister and Minister-in-Assistance to the President, David Paul gave new information about SOV in a conference. He explained how SOV is a digital currency which is built on a specialized blockchain and is issued by the government. RMI currently uses the United States dollar as its currency, and the dollar will still be used within the islands even after launching SOV.
Challenges faced by people of Marshall Island
The main challenges faced by the citizens of RMI and the government are the 10% per transaction cost, challenges faced by the islands present on the outskirts, lack of monetary policy options, etc. The minister believes that SOV is fair, safe, and simple. The supply of the currency will grow by 4% every year which will remove the issues of “printing money,” which can be considered as one of the reasons behind the global financial crisis.
SOV will have strong compliance features as part of the blockchain making it more secure as compared to other currencies. More features include the algorithmic fixing of the supply growth and sending new SOV automatically to SOV holders.
Citizens of RMI will receive an equal split of 10% initial currency supply.