The Marshall Islands, located in the Pacific, will offer their own cryptocurrency called Sovereign (SOV), which has been approved by the country’s parliament to be circulated as legal tender along side the US dollar.
The country’s president, Hilda C. Heine, said this “is another step of manifesting our national liberty.” David Paul, minister-in-assistance to the president, admitted that cryptocurrencies are “the way of the future” and that “as a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.” The Sovereign will total 24 million coins in honor of the country’s 24 municipalities and be released through an ICO and presale at a to be determined date. The raised funds will go towards the Marshall Islands Trust Fund that benefits climate change efforts, green energy, healthcare for those still affected by the U.S. nuclear tests, and education.
Distinctively, the currency will be a permissioned and non-anonymous protocol called ‘Yakwe/Yokwe’, which means ‘hello’ in the local language. The protocol will require users to identify themselves, but Paul explained he hopes that this non-anonymous platform will make the cryptocurrency compatible with the framework of a regulated banking environment. Neema, an Israeli fintech startup, is helping the Marshall Islands design and launch the currency.
Cryptocurrencies have various structures and levels of transparency and decentralization
The recent flurry of new cryptocurrencies and their price fluctuations have users reflecting on how the structure of each cryptocurrency affects its function and price. The dynamic between the Venezuelan Petro and the Marshall Islands’ SOV is a great example. The SOV has been deemed legal tender by the country’s legislative body, will have its price determined by market rates, and the Marshall Islands are a UN member country, which allows the currency to have easier and larger access to the world stage. Venezuela recently released the Petro, but the Petro was not voted to be legal currency by their legislative body, pegged to oil prices, which can be manipulated by the government, and the country is under embargo. Officials claimed that the Petro sold $735 million USD on the first day, but there is doubt around this statistic and concerns the government comprised a significant portion of the buyers.
The opaqueness of the Petro runs counter to many cryptocurrency goals, which does not bode well for future adoption of the Petro. In contrast, the SOV has information released in an open way and appears to have a relatively clear path forward under the stewardship of a financial tech firm. However, the SOV’s non-anonymous protocol will demonstrate if users are willing to accept the trade-off of less privacy in their cryptocurrency for legal currency status and switch from USD or private cryptocurrency. Not all cryptocurrencies are created equal.
Dash is structured to serve consumers in a long-term, stable, and decentralized way
Each cryptocurrency has a unique structure for its unique functionality. The unique structure of Dash allows it to be anonymous, trustless, have stable development, and meet the requirements of currency. Anyone can view the Dash blockchain and see where money is moving, how much money is moving, and view funded projects without sacrificing their privacy. The structure of Dash allows for a business-like DAO to maintain and promote the network in ways that can rival bank operations. Dash leverages its structure to achieve its function, which is to attempt to satisfy as many consumer desires as possible and strive towards long term and stable growth as a cryptocurrency.
The cryptocurrencies that leverage their unique structures and functions to satisfy consumer desires the best, will win out in the marketplace.