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The Marshall Islands are trying to establish a “self-confident identity” with a new blockchain-based currency

June 6, 2020

The Marshall Islands project calls for the creation of a digital state currency called SOV to be a “game changer”. It could also be a pioneer in government response to crises like the COVID-19 pandemic..

In an exclusive interview with Cointelegraph, Joel Telpner, president of Sullivan’s fintech and blockchain practice and crypto consultant for the Marshall Islands, noted that the project still faces “many” challenges, but hopes to do “worthwhile” work.

The current phase of the SOV project

Telpner told the island government is currently in an 18-month phase, and they will publish the so-called “preSOV” that will later become SOV, he said::

“During this 18-month period, we can gradually issue preSOV and provide the amounts to test the infrastructure as we do it. As preSOV comes onto the market, we can test the network and test the blockchain, test all legal and compliance regulations, and we can test the technology. “

The Marshall Islands are trying to establish a “self-confident identity” with a new blockchain-based currencyThe Marshall Islands are trying to establish a “self-confident identity” with a new blockchain-based currency

The 2018 State Currency Act passed on February 26, 2018, and allowed the nation to begin developing its digital currency project.

As for preSOV, the lawyer hopes to begin issuing the temporary token within the “next two months”. He admits that he still needs to improve the way the cryptocurrency was presented to people who have no experience with the technology. .

Telpner made it clear:

“The Marshall Islands have chosen not to issue the coin all at once, but to put it on the market at once if you throw legal tender.”

The Marshall Islands could be the reference for other small nations

The SOV advisor from the Marshall Islands also spoke about how the project can be a reliable reference for other countries that want to follow the same path., You think, that “This is a great way for the government to empower people in their country.” and a “Self-confident identity”.

About the role these types of digital currencies could play in the midst of the COVID 19 crisisTelpner commented:

“Think how efficient and much better it would have been if we had a digital currency combined with a self-confident identity that would have allowed the government to receive payments quickly and efficiently from the people to whom we are entitled.”

However, According to Telpner, the digital currency does not have to rely specifically on blockchain technology::

“I don’t think there is a word yet on whether blockchain solutions are the preferred way to create, spend, and distribute digital currencies.”

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