Republic of Marshall Islands selects Algorand project as technology partner for launch its national digital currency.
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After the first announcement of the statecryptocurrencies Marshallese Sovereign (SOV) in February 2018, the Marshall Islands took another step in the development of the project by entering into partnership with a major blockchain startup Algorand.
According to a statement from SFB Technologies,which develops the SOV infrastructure, the state cryptocurrency will be based on Algorand technology. The Algorand protocol will be implemented to ensure speed, scalability, security, and regulatory compliance, such as identity management and a platform to comply with local laws.
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The statement notes that SOV will appealin parallel with the US dollar, which is used as the official currency in the country, and will help the republic to function effectively in the global economy. The national digital currency initiative will be regulated by the Marshall Islands government, and the SOV offer will be algorithmically fixed to grow by 4% each year to prevent inflation.
The message notes that SOV willdistributed through pre-sale token. In particular, the national digital currency will be presented through a series of auctions in the framework of the monetary issue, which is expected this year.
Republic Speaker Kenneth Kedy (KennethKedi) spoke positively about the new technology partnership, saying that cooperation with Algorand increases the efficiency of the team behind the SOV initiative and also contributes to the further development of the financial services industry in the country.
According to the statement, SOV claims the title“The world's first national digital currency,” since the token will be a sovereign currency circulating with the US dollar. Unlike similar projects, SOV will be not just a digital version of the fiat currency, but an independent token.