Cryptocurrency Of Marshall Islands To Get Physical Equivalent
A Swiss company Tangem will develop the physical banknotes of Sovereign (SOV) — the official cryptocurrency of the Marshall Islands and world's first governmental token at the same time, according to a press release.
The physical equivalent of SOV will provide residents of the republic with their legal access to the cryptocurrency, regardless of the Internet connection. Also, the issuance of the banknotes will be controlled by the Marshallese authorities, which eliminates the risk of excessive funds emission.
Tangem is known as a manufacturer of smart cards and virtual wallets. The future state banknote will have a blockchain-based microprocessor, combining the advantages of traditional paper money and the security of distributed ledger technology. Prior to this, the Swiss company released 10 thousand physical equivalents of bitcoin of different value as part of a test program.
After entering the circulation, the new notes will be equal in status to the US dollar, which serves as the official fiat currency of the state.
The question of the state-backed SOV token has been discussed by the Marshallese authorities for about a year, causing controversy among local politicians and international organizations. In August 2018, the IMF claimed that the cryptocurrency could threaten the state's financial stability.
While the president Hilda Heine is actively promoting the idea of the national token, the parliament does not support such an initiative and even voted against the acting head of the country. She was just one vote short from the resignation, but the question of launching SOV remains open.
Besides, Iran may also introduce a national cryptocurrency soon.