Marshal Island is seeking to establish a digital currency as its sovereign currency. SOV, the name of the project is meant to be a gamechanger and could pioneer how state governments respond to pandemics.
According to Marshal Island advisor for crypto, the SOV project still faces stiff challenges but the team promised to make it as rewarding as possible.
Joel Telpner noted the Island is in its 18-month phase and would be issuing an acid test of the project, dubbed as PreSOV. Telpner pointed out that the PreSOV will later convert into the SOV.
Government will roll out SOV in stages
This 18 month period is significant to the government as it will enable them issue preSOV in phases. While at the same time specifying the test amounts to acid test the Marshal Islands new digital currency platform. In the meantime, the government will have introduced the digital currency to the market and will be able to assess the blockchain.
Additionally, Telpner noted the period will allow the government to test all compliance and regulatory provisions that the technology associates with.
Marshal Island digital currency passed the Sovereign Currency Act of 2018 on February 26, 2018. The act allowed the state to begin building its digital blockchain project. The attorney attached to the project pointed out the issuance of preliminary tokens is set to begin any time, in the next couple of months.
Introducing Marshal Islands new digital currency to the people
In fact, he stated the need to refine how the government presents the crypto project to citizens, most of whom have no background in technology. Furthermore, Telpner underrated the issuance of a government digital currency all at once and insisted the need to launch a legal tender in stages. He said:
…when you’re launching a legal tender, putting it in the market all at once is not a good idea.
On the other hand, Telpner believes Marshal Island new digital currency project serves as an excellent benchmark for other governments willing to follow the same path. Telpner believes placing digital legal tender in the hands of the people is a great way to empower its citizens.