Hardware wallet-company Tangem has been selected by the Republic of the Marshall Island to produce ‘physical blockchain notes’ for the country’s national cryptocurrency. These blockchain notes are physical wallets that will be used to store the republic’s sovereign digital currency, abbreviated as SOV. The deal was announced by Tangem itself, which is based in Switzerland.
The introduction of SOV allows for an easier and controllable mechanism for money circulation. Tangem will make cards, and money transfer will happen without fees and can also be done when there’s no internet connection. “Tangem will help us ensure all citizens, including those living on more remote outer islands, are able to easily and practically transact using SOV.”, a representative of the country stated.
SOV coins will be accepted as an alternative currency besides the U.S. dollar. However, the introduction of the digital currency comes with some drawbacks. The International Monetary Fund (IMF) is against it, and states that ‘external aid and other flows could be disrupted, which would result in a significant drag on the economy’.
It’s unclear on when the SOV would be introduced exactly. The coin was announced in February 2018. The country back then announced it would issue 24 million SOV, which would be split between the government and tech company Neema. Neema provides the technical part of the operation. From the country’s share, six million SOV will be sold to investors and 2.4 million will be handed out to its 50 thousand inhabitants.
The introduction of SOV would make The Marshall Island the second country in the world with its own currency. Venezuela introduced the Petro late last year, but that country is in financial chaos thanks to the extreme devaluation of the Venezuelan Bolivar. The Petro is backed by crude oil reserves.
Also published on Medium.