A Tiny Pacific Country Creates Its Own Digital Currency To Reduce Dependence On U.S. Dollar
A small Pacific Ocean country, the Marshall Islands, has decided to create its own digital currency to reduce its dependence on the U.S. dollar.
With only about 75,000 people living in the Marshall Islands, the country broke ground in the cryptocurrency space when it released an essay detailing how it expects to operationalize its blockchain-based digital currency known as the Marshallese sovereign (SOV).
“With the blockchain technology in place, we thought this was an opportune time to establish our own legal tender and lessen the nation’s dependence on the dollar,” said David Paul, the environment minister and minister-in-assistance to the president of the Republic of the Marshall Islands.
“As a small country, it’s going to be easier and faster for us to make decisions and respond to the market.”
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Officials in the country are still finalizing the compliance and regulatory framework to ensure that the Marshallese sovereign can be fully integrated into the international financial ecosystem before a launch date is announced.
The Marshall Islands got its independence in 1979 and has been using the U.S. dollar as the official currency for all payments, according to a Coin Telegraph report.
Fiat remittances are expensive for citizens and a blockchain-based system is expected to help make the process affordable and frictionless, presidential assistant Paul said in the essay.