Marshall Islands To Issue Its Own Cryptocurrency

September 06

In 2018, the Marshall Islands passed a Sovereign Currency Act, declaring its intention to release a new, national digital currency.  In an essay published by Coindesk on September 4, The Honorable David Paul, Minister In-Assistance to the President and Environment of the Marshall Islands, stated that the official launch of the cryptocurrency – to be known as the sovereign (SOV) coin — will be announce at Invest:Asia 2019, upcoming in Singapore on September 12.  Currently, the Marshall Islands uses the U.S. Dollar. One practical reason for creating their own currency is that Marshallese citizens often send or receive money using remittance services, paying fees of up to 10% per transaction. And also pointed out, even simple things like acquiring and installing ATMs becomes complicated when you are in the middle of the Pacific Ocean. By using cryptocurrency, the country does not need to create a central bank and manage the printing and processing of paper money.

With respect to the competing blockchain issues of psuedonimity and privacy, Minister Paul said; “Every individual using SOV must be identified by an approved verifier of their choice, such as a bank or an exchange. This will close the secrecy and anonymity loopholes exploited by criminals and terrorists. However, it is crucial that individual users should have a reasonable expectation of privacy – specifically, the ability to choose when to disclose your information, what exactly to share, and with whom. We are committed to providing this privacy with SOV.

Email
David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

Categories

Location