Marshall Islands Launches National Fixed Gain Cryptocurrency

Marshall Islands Announces Sovereign (SOV) Fixed Money Growth National Digital Currency.

This was announced on September 4 by David Paul, Assistant to the President of the Marshall Islands. According to him, the sovereign will have a fixed and protected money supply with an annual increase of 4%, in accordance with the Milton Friedman rule. Such an increase in volume will help contain inflation and stimulate economic development.

In 2018 the country has passed legislation to create its own independent currency, which will act as a second legal tender, along with the US dollar, considered state currency since 1979. The government gave preference to cryptocurrency, since any centralized solutions would be ineffective for a country with a population of about 50 thousand people living on more than 1000 Pacific islands..

Marshall Islands Launches National Fixed Gain Cryptocurrency

According to essay David Paul, in addition to decentralization and transparency, blockchain technology allows the government to automate most of its procedures, reduce operating costs and simplify the fight against money laundering. To this end, local banks and exchanges will verify the identity of all SOV owners, preventing anonymous use. However, in parallel, the system will provide maximum data protection and confidentiality of operations..

The Marshall Islands government believes that most central banks are lighthearted about money and see it as an infinite resource, which ultimately hurts all economic  subjects. This point of view is also shared by the head of the credit strategy department of Deutsche Bank Jim Reed, who recently said that the aggressive policy of the Central Bank contributes to the growth of the popularity of cryptocurrencies..

text: Ivan Malichenko, photo: iri

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