The Marshall Islands made its own cryptocurrency, doing away with the US dollar. The government has signed the change into law, making the “sovereign” its new official cryptocurrency.
The bill was signed into effect on March 1st, but the news is making waves again this week. The Marshall Islands’ population is 53,066, so the change doesn’t affect many, but it is significant for citizens of the islands because banks and credit card companies will be required by law to accept it.
With the recent change, US dollars are still likely to be accepted on the Marshall Islands — the sovereign will just be considered the nation’s official legal tender.
In February, top officials from the Marshall Islands confirmed that the Pacific republic would issue its own cryptocurrency to be circulated as legal tender. The digital coin also received approval from the country’s parliament.
“As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form” -- David Paul, Minister-in-assistance to the President of the Marshall Islands
The sovereign will be launched through an initial coin offering and supply is supposed to be capped at 24 million tokens, as a precaution against inflation. A token presale for investors would launch soon.
Details on how the coin will be built, which blockchain to use or what "proof" it would initiate is still unclear. You can read the DECLARATION AND ISSUANCE OF THE SOVEREIGN CURRENCY ACT 2018