Marshall Islands Launches National …
Marshall Islands Launches National Digital Currency on Blockchain
Republic of the Marshall Islands launches national currency on the blockchain in an effort to “gain the independence of monetary policy in accordance with its own values”.
The Marshall Islands passed the Sovereign Currency Act in 2018, which outlines a plan to launch a national digital currency. The state, which gained independence in 1986, until this time used the US dollar as its official currency.
As explained by Assistant to the President of the Marshall Islands David Paul, the choice of technology for the release of the second legal tender is due to the conviction of local authorities that centralized solutions are not applicable in a state with a population of just over 50,000 people, scattered across numerous islands in the Pacific Ocean..
As an additional advantage of such a currency, he pointed to the possibility of setting legal standards at the protocol level while “maintaining the privacy of individuals.” Approved institutions such as banks and exchanges will take on the task of identifying users of digital currency, which will eliminate the possibility of its anonymous use and will not compromise the protection of personal financial information.
“It is critical that individual users have reasonable expectations in the context of privacy. In particular, this refers to the ability to choose when, what information, and to whom, ”writes Paul.
According to him, the national digital currency of the Marshall Islands will have limited emissions, and the inflation rate will be set at 4% per year..
“We decided to use limited emission with a fixed growth rate because fiat currencies are notorious for their volatility. The politicians of the major central banks are not instilling confidence, as evidenced by the prices of bitcoin and gold. As a government, we need to take a more consistent approach to money and not see it as an unlimited resource, ”he added..
Paul also notes that issuing fiat currencies is expensive and funded by ordinary citizens, while a blockchain-based system is able to eliminate similar shortcomings of the traditional approach..
Media: The Central Bank of China is preparing to test the national digital currency in two cities The People’s Bank of China intends to test the electronic…
Binance Launches Program to Recover Lost Assets on Its Blockchain Binance Cryptocurrency Exchange today announced the launch of its’ BNB…
The US Department of Homeland Security has provided a grant to the cryptocurrency project Factom The US Department of Homeland Security (DHS) has allocated…
Winklevoss Brothers Launch USD-Backed Ethereum Token NYS Department of Financial Services has approved Gemini Trust’s request for…
ECB President: We must stay ahead of the curve in the stablecoin space European Central Bank President Christine Lagarde believes that…