The Marshall Islands, a group of more than 1100 islands, halfway between Hawaii and Australia, beat rest of the world in adopting a cryptocurrency as a legal tender.
The nation of hardly 53000 residents, passed a law to declare SOV as its sovereign cryptocurrency on Wednesday. The Marshall Islands do not have its own currency and they recognize American dollar as the legal tender.
Notably, most other nations of the world have shied away from recognizing cryptocurrencies as sovereign guaranteed money because of the anonymous nature of money. To tide over that problem, the SOV users would be required to identify via SOV blockchain. This will ensure transparency around the source of funds.
To headstart the process, The Marshall Islands is going to issue a small amount of SOV to its residents for free, by the end of this year. Later on, the foreign investments will also be allowed.
The government plans to invest back revenue generated from worldwide investments into the economy of The Marshall Islands.