Finance:Sovereign Currency Act of 2018

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Short description: Marshallese legislation
Symbol for the SOV.

Sovereign Currency Act of 2018 is a statute of the Legislature of the Marshall Islands which was passed on February 26, 2018. The Act creates and issues a digital decentralized currency (“cryptocurrency”) that will be used as a legal tender of the Republic of the Marshall Islands (RMI).[1]

Sovereign Currency Act of 2018

The Sovereign Currency Act of 2018 creates and issues the Sovereign (SOV) its own cryptocurrency.[2] This would lower the dependence on the USD.[3] There are plans for a portion of the cryptocurrency's revenue to go towards radiation-related health care needs following nuclear tests from 1946 to 1958.[citation needed]

Implementation

The Sovereign cryptocurrency was created through a partnership with Neema, a financial technology startup.[2] Neema will use “Yokwe” protocol to ensure anonymity while also linking each account with a verified government identity that is both encrypted and private.[4] The SOV will be issued by the RMI’s Ministry of Finance and introduced through an initial coin offering (ICO) at a date yet to be announced. The number of SOV’s in circulation will start at 24 million and will grow by 4% each year.[5] RMI President Hilda C. Heine called the creation of SOV “another step of manifesting our national liberty.” [6]

Response

In September 2018, the International Monetary Fund (IMF) released a report warning the RMI not to launch its own cryptocurrency, the Sovereign, with primary concerns with cryptocurrency being a second form of legal tender, that the revenue from the ICO would be smaller than expected, and that proper governance on the cryptocurrency were not adequate.[7]

See also

References

  1. ↑ Ejukaan, Jepilpilin Ke (26 Feb 2018). "Declaration and Issuance of the Digital Sovereign Act 2018". https://rmiparliament.org/cms/images/LEGISLATION/PRINCIPAL/2018/2018-0053/DeclarationandIssuanceoftheSovereignCurrencyAct2018_1.pdf. Retrieved 29 September 2018. 
  2. ↑ 2.0 2.1 Chavez-Dreyfuss, Gertrude (28 Feb 2018). "Marshall Islands to issue own sovereign cryptocurrency". https://www.reuters.com/article/us-crypto-currencies-marshall-islands/marshall-islands-to-issue-own-sovereign-cryptocurrency-idUSKCN1GC2UD. Retrieved 29 September 2018. 
  3. ↑ Keane, Jonathan (23 Apr 2018). "Inside the Marshall Islands' plans to launch its own legal tender cryptocurrency". https://thenextweb.com/hardfork/2018/04/23/marshall-islands-cryptocurrency/. Retrieved 29 September 2018. 
  4. ↑ "Marshall Islands to issue legal cryptocurrency "Sovereign"". 6 Mar 2018. https://www.econotimes.com/Marshall-Islands-to-issue-legal-cryptocurrency-Sovereign-1184602. Retrieved 29 September 2018. 
  5. ↑ "crypto that is real money.". https://www.sov.global/. Retrieved 29 September 2018. 
  6. ↑ "How the Marshall Islands envisions its national digital currency dubbed ‘sovereign’" (in en). 2019-02-18. https://www.pasifikarising.org/how-the-marshall-islands-envisions-its-national-digital-currency-dubbed-sovereign/. 
  7. ↑ "Republic of the Marshall Islands: 2018 Article IV Consultation - Press Release; Staff Report; And Statement by the Executive Director for Republic of the Marshall Islands". International Monetary Fund 18/270. Sep 2018. https://www.imf.org/~/media/Files/Publications/CR/2018/cr18270.ashx. Retrieved 29 September 2018. 





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