Geography Now! MARSHALL ISLANDS
Marshall Islands, a small Pacific nation, intends to create its own cryptocurrency and give it legal tender status.
The country’s authorities plan to launch the national virtual currency Sovereign (SOV) from the third quarter of 2018 with an emission limit of 24 million coins. In the near future, the government will not give up the US dollar (official currency), but will only supplement it with cryptocurrency.
However, legal tender differs significantly from legal one. The second option can be attributed to bitcoin, which is legalized in Japan, the United States and South Korea, but is not required to accept it. Marshall Islands decided to grant SOV the first status in which refusal to accept national cryptocurrency would be illegal.
Anyone wishing to receive Sovereign during the initial offering to create a crypto wallet will be required to fully identify themselves using a standard that is similar to the KYC used by exchanges. Such a system will make it impossible to use digital coins for money laundering, tax evasion and other criminal schemes..
SOV will be freely distributed, so it will be available even to tourists. In addition, they will become permanent currency, which will simplify regulation..
Our journalist Evgenia Likhodey spoke about Venezuela’s experience in creating a national cryptocurrency in an analytical article..
text: Ivan Malichenko, photo: Pexels