In a bid to bolster the local economy by enabling mainstream adoption of cryptocurrency, Switzerland-based blockchain smart card wallet maker, Tangem is all set to issue the world’s first banknotes that represent digital currency for the Republic of Marshall Islands [RMI]. Also touted as the sovereign currency- SOV, the currency will act as an alternative official legal tender along with US Dollar of Marshal Islands post its launch.
The SOV notes are physical in nature with blockchain enabled microprocessor embedded. An Israel based startup- Neema that facilitates global transactions, had developed the core technology for SOV using a protocol called Yokwe. This protocol is designed to pacify the financial violations and felony and 100% secure and transparent.
Creation of the all-new decentralized legal tender comes with the underlying aim to conventionalize its usage for all people in the tiny Pacific island. People of the RMI will have access to SOV regardless of whether they have an internet connection. With no internet requirement coupled with features like instant transaction validation and low-cost execution of global transactions even for people living in remote outer islands, Tangem banknotes will enable the Marshall Island’s foray towards a new global digital economy.
In a statement, President Hilda Heine announced,
This is a historic moment for our people, finally issuing and using our own currency, alongside the USD. It is another step of manifesting our national liberty.
The island nation passed the Declaration and Issuance of Sovereign Currency Act to issue the physical digital tokens on February last year. The project came to a brief halt on September after the International Monetary Fund [IMF] warned against the introduction of SOV.
This move is announced at a time when the termination date of reparation aid [the US compensation for carrying out 67 nuclear tests during the years 1946 to 1952] is drawing closer. The Marshall Islands might possibly face a grave economic crisis after 2023 which is why the small country has geared up by developing its own legal tender. Unlike Venezuela’s controversial Petro, which is oil-backed, SOV has been created with an intention to benefit the Marshallese citizens and put the island nation into the global map. Also, the Marshal Island plans to include blockchain expert Steve Tendon onboard, which reflects the sanctity of this ambitious project.