The measures that RMI took to combat COVID-19 could adversely impact the economy, and issuing Sovereign legal tender would raise risks to monetary stability of Marshall Islands.
The goal for the sovereign nation was to have their own currency which would be free from the control of any other nation.
The Marshall Islands wants to move to a bankless, fiat-less society, so its creating the Sovereign.
The Marshall Islands has procured the services of Swiss-based Tangem for the production of physical blockchain banknotes for its official currency.
the Marshall Islands’ plan to introduce a digital currency as the nation’s legal tender is showing signs of progress. The Sovereign (SOV) could come to life as early as this year.
The unsuccessful removal of country’s president, Hilda Heine shed hope of the plan to have its own state-backed cryptocurrency called the Sovereign.
The plan of Marshall Islands to introduce a new national currency have been welcome with considerable resistance by the international currency and there are now concerns that the country may have to scrub the plans.
The International Monetary Fund (IMF) has cautioned against plans to issue cryptocurrency as a form of legal tender in the Republic of the Marshall Islands.
Marshall Islands is reportedly looking to offer a proprietary digital currency, which would be legal tender alongside the local fiat currency.
The country, home to just 70,000 people, is poised to become the second country after Venezuela to launch a state-backed cryptocurrency.
