Blockchain-Based National Currency is Soon on the Dice for the Marshall IslandsSeptember 16, 2019
The United States has been naysaying the Marshallese Sovereign (SOV) for quite some time. However, the Republic of Marshall Islands (RMI) is moving ahead with its goal of issuing a blockchain-based national currency.
The US has been saying that the token will be unstable, crash the local telecom system, exploited for money laundering, funds terrorism, and a range of other stuff.
The SOV will be introduced through a pre-token sale which will be ongoing for an extended period of time, and it is known as the Timed Release Monetary Issuance (TRMI).
The currency is expected to be officially launched within about 18 to 24 months, and the units which are sold during this period will be exchanged for SOVs.
David Paul, the minister in-assistance of Marshall Islands, stated, that the SOV currency will be powered by the blockchain technology and also that its growth will be “predetermined and tamper-proof,” and also that the compliance will be “baked into the currency protocol itself,” eventually maintaining the privacy for individuals.
Irrespective of the location, people will be able to register for a pre-sale on the newly launched website of the SOV Development Foundation. The SOV Development Foundation is a non-profit, which has been set up to oversee the country’s national digital currency.
The ICO is the common fundraising technique. How the TRMI is different from ICO is a common interrogation.
Blockchain companies mostly use icos; however, BTC and ETH are used to purchase tokens from a startup company. If the company takes off, it will be theoretically worth something. If it does not develop into something worthwhile, then the investors get nothing. However, the TRMI will not leave its investors struck in a situation like that. The major reason for the pre-sale of SOVs is to get a sense of liquidity and to improve the market interest in the SOV cryptocurrency.
“TRMI is another way of doing a [ICO] but more responsibly and methodically. That’s the TRMI. You have to look at how to establish liquidity. When you do TRMI, you’re looking at the appetite for the product and how it’s going to [behave] in the markets.”
The SOV will be circulated and operated by the RMI government, and it will be used as a medium of exchange along with the USD in the transactions of the tiny island nation.