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Marshall Islands: SOV Foundation releases white paper on national blockchain-based currency

The SOV Foundation released, on 10 September 2019, a white paper ('the White Paper') on the Marshallese Sovereign ('SOV'), a blockchain-based currency and new legal tender of the Republic of the Marshall Islands as provided for by the Declaration and Issuance of the Sovereign Currency Act 2018. In particular, the White Paper highlights that the supply of the SOV will be set to grow at a fixed rate of 4% per year, that the SOV will be open to anyone, and that user details will be kept private and not published to the blockchain. Moreover, the White Paper notes that due to the small size of the Marshall Islands, a central bank and traditional financial infrastructure are not viable, and that the SOV enables hard-coding of monetary policy onto the blockchain at a low operational cost.

In addition, the White Paper outlines that there will be a delegated network of verifiers who onboard SOV users through private identity verification, and supply users with a SOV ID. The White Paper further details that this process will enable SOV users to select verifiers based on their personal information protection practices. Moreover, the White Paper details that anti-money laundering and combatting the financing of terrorism features will be built into the SOV. The White Paper also clarifies the initial distribution and sale processes for the SOV. 

The SOV Foundation noted that the issuance of the SOV is currently open for pre-registration through a Time Release Monetary Issuance.

You can access the White Paper here.