Ever since the blockchain technology started gaining momentum, the world is witnessing many firsts. One such landmark development is the decision to introduce the first decentralized digital currency in the world for a nation called the Marshall Islands.
The digital currency in question, referred to as the physical notes of the Sovereign (SOV), will be issued by Tangem as noted in the official announcement dated Jan 28th. Tangem is a renowned Swiss company that produces the blockchain based smart card wallets for crypto transactions. Once the SOV gets issued, RMI (the Republic of the Marshall Islands) will have another official legal tender in addition to its recognized currency of the US dollar.
Better Roads Ahead For RMI
For people of the Islands to access and utilize the digital currency equally without any restrictions, the SOV will have offline accessibility as well. That means all those people who don’t possess the internet connection would also be able to transact with this type of digital currency seamlessly.
Thanks to all the inherent advantages of the blockchain technology, SOV will not only facilitate value exchange on a global level, but it will make it more rapid, secure and cheaper. Moreover, the validation of the SOV transactions will be instant minus any charges due to its reliance on the DLT-based technology.
As far as the burden of technical infrastructure on the RMI goes, there won’t be any as the digital banknotes will be physically circulated off-chain with fair practices among all the holders.
Smart Digital Card As National Currency
SOV in its physical banknote form will be a unique smart card with a microprocessor powered by blockchain. According to Tangem, this technology will let the end users store as well as carry the cryptocurrency easily on the plastic card that has an NFC antenna (Near Field Communication) and a chip inside it. The currency will combine blockchain’s added security with the ease of the general paper-based bank notes.
The company also ensured that the physical form of this digital currency would be completely decentralized, transparent, 100% safe, and depict a controlled process in issuing and circulating the currency throughout the nation.
Tangem’s co-founder, Andrey Kurennykh, was quoted saying on the collaboration, “We are excited to partner with the Republic of the Marshall Islands to do something that has never been done before: issue a digital currency as official legal tender.” The Marshall Island’s assistant minister to the president also exclaimed their enthusiasm about being the first ever country to embrace the digital currency in its physical form.
The Other Side of the Coin
While the island residents are quite excited about this development, the move is being opposed by IMF (the International Monetary Fund). The disagreements are being raised on the grounds of running major potential economic and financial risks in the future.
The Island government, however, is firm on their decision citing the country reserves all the rights when it comes to the issuance of a new currency in any form they feel appropriate. After all, the digital currency will indirectly decrease their dependence on the United States Dollar.