By Nir Yaacobi, SOV Development Foundation board of advisors
Sovereign (SOV) is a blockchain-based currency which is about to become the new legal tender of the Republic of the Marshall Islands (RMI), following the Sovereign Currency Act 2018 adopted by the Marshallese parliament.
Unlike other blockchain-based currencies such as Bitcoin, Ethereum, Facebook’s Novi/Libra and many more, all of which face various regulatory issues, SOV is a national currency of a sovereign country. It therefore complies with all banking regulation and is subject to international treaties. However, unlike other national currencies, SOV monetary policy is governed by an algorithm rather than by a central bank. This monetary policy is centered first and foremost on a deterministic money supply, starting with an initial offering of 24M SOV and then 4 per cent monetary growth each year. …
In case you missed it, watch the live panel recording of Dr. Peter Dittus discussing CBDC and how the Marshall Islands currency fits into the ecosystem.
By Dr. Peter Dittus, board member of the SOV Development Foundation and Chief Economist at SFB Technologies
Despite regulatory constraints, the rise of digital money continues unabated. Digital currencies are poised to cause a major ripple in economies around the world next year. And looking further ahead, according to a study by Deutsche Bank, virtual currencies could replace fiat money and upend the entire financial system by as early as 2030.
The growing popularity of virtual currencies is “digitising” the financial sector. …
By Dr. Peter Dittus, board member of the SOV Development Foundation and Chief Economist at SFB Technologies
Contrary to popular belief, the differences between digital and traditional currencies aren’t that big. Both are mediums of exchange to purchase goods and services, they are used to store and transfer value, and both can be traded on exchanges. There are some aspects though that make virtual currencies stand out over fiat money.
When Satoshi Nakamoto published his work on Bitcoin in 2008, he aimed to create a new electronic peer-to-peer payment system. At first, however, Nakamoto’s ideas were hardly noticed. …
By Dr. Peter Dittus, board member of the SOV Development Foundation and Chief Economist at SFB Technologies
Cash has been king in the Marshall Islands, but the days of coins and notes are numbered as the government approaches its plan to issue its own blockchain-based digital currency, the Sovereign or SOV.
The SOV will circulate alongside the US dollar, the country’s current fiat tender, and help the island nation tackle a range of challenges: from climate change and health issues to bringing previously unbanked individuals into the financial system.
Moreover, digital legal-tender currencies like the SOV can enable safe, instant and cost-effective international payments — and prevent small economies from being left behind. …
By Dr. Peter Dittus, board member of the SOV Development Foundation and Chief Economist at SFB Technologies
22 November 2019
Sustainable, safe and simple — the Marshallese Sovereign heralds a new era for the Pacific island nation
Early last year, the Republic of the Marshall Islands announced its plan to introduce a blockchain-based currency, the Sovereign or SOV.
Fast forward a couple of months and the Timed Release Monetary Issuance (TRMI), the pre-sale for the SOV, is just around the corner, with the exact date to be revealed in the next couple of weeks. …
On September 11th, Minister David Paul announced the Time Released Monetary Issuance (TRMI) for the Marshallese sovereign (SOV) at the Invest: Asia conference in Singapore. Once the TRMI launches, people from around the world will be able to purchase pre-SOV units, which can be exchanged for SOV once the Marshallese sovereign launches.
"We're committed to do it the right way," The Minister said. "As long as we do it in a responsible manner it's going to withstand the test of time."
CoinDesk has just released the videos from the conference, so you can watch the Minister's talk in full.
The Minister's talk and interview made waves in both the crypto and mainstream media. We particularly recommend reading this article by Bloomberg that summarizes the key topics the Minister raised in his talk.
David Paul
Coindesk September 4, 2019
The Honorable David Paul is Minister In-Assistance to the President and Environment, Marshall Islands.
This essay is presented as a part of No Closing Bell, a series leading up to Invest: Asia 2019 focused on how the Asian crypto markets are interacting with and impacting global investors. To keep the conversation going in person, register for Invest: Asia 2019 coming up in Singapore on Sept. 11–12.
Since becoming an independent democratic nation in 1979, the Republic of the Marshall Islands has used the US dollar as money. …
Issuing the Marshallese sovereign (SOV) is a major undertaking. It would not be possible without the help of blockchain technology experts and economic advisors to help:
- Understand what is and is not possible
- Analyze the impact on the Republic of the Marshall Islands
- Design the ultimate technical solution
- Finance the development and issuance of the initial SOV
We are happy to announce that SFB Technologies, Inc is the Appointed Organizer.
