The Republic of the Marshall Islands have taken another step closer to formalising their own Marshallese Sovereign (SOV) by revealing their new national digital currency will be launched upon the Algorand (ALGO) blockchain.
Today, the Republic of the Marshall Islands announced the first national digital currency, the Marshallese sovereign (SOV), will be built using Algorand’s #blockchain: https://t.co/8fS6adYj2b @SOV_Foundation #digitalmoney #SOV @jpwgnr pic.twitter.com/qkiFQmxPgy
— Algorand (@Algorand) March 2, 2020
According to a statement by SFB Technologies, the company tasked with bringing the state currency to life, the U.S. dollar will continue to operate in The Republic as a means of exchange alongside the new SOV.
The SOV project itself is a three-sided affair, with the Marshall Islands Government having oversight, SFB Technologies supplying the identity management and compliance side of the equation and Algorand providing the functionality.
Kenneth Kedi, Speaker of the Marshallese Parliament, states that “…a strong alliance is forming to develop the SOV project. This is another milestone towards developing the Marshall Islands financial services industry.”
Citing Algorand’s speed, scalability and security as key reasons for choosing the protocol, SFB Technologies believe the proof of stake blockchain will provide a means to “…effectively implement compliance controls and the transaction finality needed for a national currency.”
As such, Jim Wagner, co-founder and CTO of SFB Technologies, is confident “…the platform has the functionality required to issue, manage and distribute the SOV on a global level.”
The SOV is to be launched through a token pre-sale with rights to future Sovereigns being sold through a series of auctions expected later this year. To prevent runaway inflation, the digital currency will be algorithmically fixed at a 4% annual growth rate.