The Marshall Islands is a small economy of around 200 million USD GDP and about 70,000 in the population.
The country’s official name is the RMI (Republic Marshall Islands) and is made up of over a 1,000 islands.
There is no central bank there, but Parliament enacted the Declaration and Issuance of the Sovereign Currency Act 2018. This allows –
“Sovereign” or “SOV” means a digital decentralized currency based on blockchain technology, which will be issued by the Ministry of Finance, in accordance with this Act and shall be legal tender of the Republic of Marshall Islands;
The issuance of the digital currency SOV as a second legal tender would raise risks to macroeconomic and financial stability as well as financial integrity.
The SOV is a cryptocurrency created by a country.
The Whitepaper addresses why the SOV was selected, and some of the reasons were –
- Low costs
- Limited RMI FMI
- International access (CBRs) limited
- Unbanked could use it