on the crypto
Le Isole Marshall they are proceeding fast to launching of its own cryptocurrency, which will be distributed as legal tender together with the US dollar. A decision that could involve one crisis in relations with the United States, which for some time now have been providing the defense for the small state known for the devastation caused by the nuclear experiments carried out by the Americans between the 1946 and the 1958.
The new cryptocurrency will be called Sovereign
In recent days the Marshall Islands have announced the official launch of the Sovereign (SOV), a provision already planned during the 2018. The virtual currency will be issued in 24 million tokens, in order to prevent the inflationary spiral and will be accompanied by a series of rules designed to prevent possible loopholes which could be exploited by criminals and terrorists.
To supervise the development plan of the Sovereign will be an independent and non-profit organization, the "SOV Development Fund", led by a council formed by seven people, of which three members will be elected by the four appointed. Two directors will be appointed by the government, while the other two will be indicated by SFB Technologies, the company hired by the government to develop the Blockchain infrastructure on which SOV will operate. The other three must have in their curriculum previous experiences in the field of Blockchain, in the banking and monetary management sector.
The importance of the Yokwue framework
The new cryptocurrency of the Marshall Islands will be distinguished adoption of the Yokwe framework, an identification protocol whose main purpose is precisely to prevent the relative anonymity provided by other cryptocurrencies.
The SOV will be released to the public through a ICO (Initial Coin Offering) in 24 million tokens. To explain why this issue, in an interview with the Reuters agency, was the minister David Paul, according to which it would correspond to 24 inhabited islands, or atolls, each functioning as an electoral district.
The reasons behind the decision
The decision taken by the government of the Marshall Islands, which could cause a crack in the traditionally friendly relationship with the United States, appears to be due to concerns about an inflationary situation that causes fear in local institutions. Precisely in order to avoid falling into the opposite spiral, that is deflation that would burden economic growth, it was decided to limit the amount of tokens issued.
Precisely with regard to relations with the USA, it should be emphasized as the first response from Washington was not very reassuring. In a note issued by the State Department, in fact, it is claimed that the government of the Marshall Islands is obliged to refrain from adopting actions that would be incompatible with the responsibilities of security and defense established by previous agreements.
Despite this, the President, Hilda Heine, Told Finance Magnates that for the country it would be a historic moment in that the issue and use of a national currency would be a further step towards national freedom.
He added that the country will invest the profits generated by the SOV in plans for climate change, green energy, health care for the benefit of those who still suffer the consequences of US nuclear tests and for education.