Marshall Islands to Launch a Sovereign Crypto Coin

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

Read Next
SEC Sends Wave of Subpoenas to ICOs

The Republic of the Marshall Islands (RMI), an island country located near the equator in the Pacific Ocean with a population of about 50,000, is poised to become the first sovereign nation to issue a cryptocurrency that will be legal tender.

The new currency is called “Sovereign” with the symbol “SOV.” The SOV, which will be distributed to the public via an Initial Currency Offering (ICO), will circulate as legal tender in the country, alongside its current local currency, the U.S. dollar.

Y-combinator Israeli fintech startup Neema is partnering with RMI to issue the SOV, starting with a presale that will be followed by an ICO later this year.

“SOV is a big deal because, until now, all cryptos were in regulatory limbo,” Barak Ben-Ezer, co-founder of Neema, told Bitcoin Magazine. “None of them was considered ‘real’ money by the IRS, SEC, etc. Accordingly, the IRS taxed them with capital gain tax, and the SEC wants to regulate all ICOs as issuance of securities. The IRS explained in 2020 why it’s not considered real money: because it’s not the legal tender of a sovereign nation.”

The solution for Neema was to find a country to partner with to create a cryptocurrency which would become the legal tender of a sovereign nation. “So SOV has the benefits of cryptocurrency and the legal and regulatory framework that covers sovereign currencies. You can use it without worrying about capital gains and even the ICO may be like selling any currency — Euro, Yen, etc.,” said Ben-Ezer.

SOV is based on a permissioned protocol, dubbed “‘Yokwe” (meaning “hello” in the local language), which requires blockchain users to authenticate. According to the SOV promoters, this “solves the anonymity problem that plagued bitcoin and precluded its mainstream adoption.”

The official statement notes that there’s a huge market need for a non-anonymous blockchain system that can operate within a regulated environment. The SOV wants to be part of a broader E-conomy vision to create a society that uses blockchain technology intensively, with a cryptocurrency and biometric IDs securely recorded on the blockchain.

“SOV is the promising starting point for the adoption of cryptocurrencies by sovereign nations,” said Peter Dittus, former secretary general of the Bank of International Settlements and Neema’s senior economic advisor. “The Yokwe protocol provides a promising balance between transparency and privacy and we’re excited to develop it further. It’s state of the art technology, put to good use, with the right values in mind and a clear purpose.”

The Bitcoin Mixing Case at the Center of the Fight for Transaction Privacy

“This is a historic moment for our people, finally issuing and using our own currency, alongside the USD,” said RMI President Hilda C. Heine. “It is another step of manifesting our national liberty. Allocating SOV units directly to the citizens will circulate the currency and distribute wealth efficiently to our people. In addition, The RMI will invest the revenues to support its climate change efforts, green energy, healthcare for those still affected by the U.S. nuclear tests and education.”

“The Marshall Islands is the first nation to adopt a transparent crypto monetary system, and we are proud of it,” added David Paul, Minister-in-Assistance to the President and Environment Minister of the RMI. “We are excited to be the world’s first nation to leapfrog into the era of digital currencies. 10 percent of our proceeds from the ICO will be directed toward a Green Climate Fund.” Paul added that he is especially proud of SOV since it is based on the Yokwe blockchain framework that has all the benefits of Bitcoin minus the anonymity.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

Earlier in 2020, the Maduro government in Venezuela launched a cryptocurrency dubbed Petro, claiming that it was the world’s first sovereign cryptocurrency. The SOV statement notes that, contrary to the Petro, the SOV will be legal tender of the country, as defined in a bill passed by the parliament. Furthermore, the RMI is a close ally of the U.S., whereas Venezuela is under embargo. SOV will be a decentralized cryptocurrency with a price that is uniquely determined by the market, whereas the Petro, initially pegged to the price of oil, can be manipulated at will by the Venezuelan government.

The RMI is a tiny island nation, but it is a sovereign nation and a member of the UN. Therefore, if the RMI will eventually deploy a cryptocurrency that is also legal tender, the impact could be huge.

Giulio Prisco is a writer specialized in science, technology and business. He is persuaded that Bitcoin and its underlying technology are about to bring disruptive positive changes to finance, business, and society.

Marshall Islands to Launch a Sovereign Crypto Coin

The Marshall Islands is popular in the Forex market because it is one of the most popular offshore trading locations. Many brokers, both legit and false, choose the region because of the lax rules on Forex trades. Unlike European countries and even the U.S. and Australia, where regulations are stricter, many brokerages opt to operate from here.

Image source: Crypto Economy

However, Marshall Islands is not making the Forex market news because of some new scam but due to the fact that it was announced that it was launching a new Sovereign Cryptocurrency.

HAVE YOU BEEN SCAMMED? If you have lost your money to online scammers, there is an opportunity you could get back your money.

Click HERE to start the recovery process

It is said that it would still be circulated and used along with the American Dollar, which is its legal currency. This coin will be capped at 24 million tokens, as they explained so as not to make it lose value.

The launching of the (SOV) Sovereign would also lead to a block chain technology which the authorities have said would help deal with the many gaps in digital coins’ transaction in the region. Like was stated above, these gaps have been exploited by many scammers for a long time.

According to one of the ministers working together with the President on this development, everyone using the SOV currency can be identified by either a bank or an exchange of their choice. The coin will be under the jurisdiction of an independent organization to be named “SOV Development Fund”. This non-profit outfit will control the issuing of the coin via initial offering.

As far back as 2020, it has been common knowledge that this coin was in development after the Sovereign Currency Act was passed in the country. The decision was reached after it was agreed that digital currency is a better solution than centralized solutions due to the small population size.

Traders would do well to take note that it is still in the works. The Marshall Islands have still not improved their grip on the restrictions on Forex brokers and funds are still at risk.

Marshall Islands to Launch Sovereign Cryptocurrency

The Micronesian country of the Marshall Islands is to issue its own cryptocurrency, to run alongside the US dollar as legal tender.

The currency will be known as the Sovereign, or SOV, and could be minted as early as this year now legislation has been passed by the Marshall Islands parliament. In contrast with the Petro , which though it has uses is not an official currency in Venezuela, the SOV will be a sovereign currency and usable throughout the country.

The Marshall Islands were under US control until 1979, and the dollar has persisted as the national currency. For president Hilda C. Heine , this is “ a historic moment for our people, finally issuing and using our own currency, alongside the USD ”.

The Marshall Islands have around 70,000 inhabitants spread over more than 1,000 islands, some of whom are still suffering ill effects from the US nuclear testing on Bikini Atoll in the 1940s and 50s. President Heine said a proportion of revenues raised will be used “ to support its [i.e. the government’s] climate change efforts, green energy, healthcare for those still affected by the US nuclear tests, and education.

David Paul, the president’s minister-in-assistance said that , “ this is the way of the future ,” and that as a sovereign country, “ we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form ”.

According to Paul the SOV will be launched via ICO, a technique more familiar to tech start-ups but which might become standard procedure for governments. There will be 24 million tokens launched, 1 million for each of the country’s 24 municipalities.

The Marshall Islands will be partnering with Israeli fintech firm Neema on the ICO . Neema founder Barak Ben-Ezer said, “ we all dreamt of this day, when the first country goes crypto ”, adding that the SOV “ will bring us several steps closer to a free, more liberated world ”, a world in which, “ money flows peer to peer, instantly and cost effectively, and no ruler can arbitrarily print more of it .”

Author

Alistair Johnston

Alistair Johnston is a British writer specialising in the crypto space. Away from cryptocurrency he enjoys Brazilian jiujitsu and surfing. He has a degree in economics from the University of Cambridge and three children. Alistair lives in Spain, slowly recovering from a decade spent working for London hedge funds. You can contact him on Twitter @alistair_crypto

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Top Binary Options Broker 2020!
    Best Choice For Beginners!
    Big Sign-Up Bonus!
    Free Trading Education!
    Free Demo Account!

  • Binomo
    Binomo

    Only For Experienced Traders!

Like this post? Please share to your friends:
Binary Options Trading Secrets
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: