ZCZC
BFF-13
MARSHALLS-BANKING-CURRENCY
Marshall Islands to launch digital currency this year
MAJURO, Marshall Islands, March 9, 2019 (BSS/AFP) – The Marshall Islands’
is gearing to release a digital currency this year, although officials
acknowledged Friday there is much work still to be done to alleviate concerns
of United States financial regulators.
However, the launch date of the currency, known as the “SOV”, has yet to be
decided.
“We plan to launch SOV this year,” said Barak Ben Ezr, chief executive
officer of Neema, the Israel-based company that is partnering with the
Marshall Islands government to develop the digital currency.
A primary issue for the launch is that following the boom in 2017 and early
2018, the crypto-currency market value has plummeted.
“We are working days and nights to prepare the foundations of the SOV
initial coin offering, with the goal of being ready to launch once positive
momentum is back to the markets,” Ezer said.
“It will be done once all stakeholders are convinced that SOV is ready,
risks have been mitigated, and momentum is building.”
Neema and the Marshall Islands are working through a multitude of US
regulatory concerns as well as the technological and logistical side of
issuing the SOV using blockchain technology.
The Marshall Islands, a tiny Pacific atoll nation with a population of just
55,000, passed legislation a year ago to develop digital currency as legal
tender.
The plan has since been criticized by the International Monetary Fund, the
US Treasury Department and bank officials in the Marshall Islands.
They argue it has the potential for a negative impact on existing banks and
for money-laundering, but Ezer believed that once fully developed, the SOV
will be one the safest monetary systems in the world.
The US Treasury has concerns about “anonymous digital currencies, such as
Bitcoin, (which) are often used for illicit purposes by people who want to
conceal their identity,” Ezer said.
But, with SOV every account would be fully identified and buyers would be
checked against the US Office of Foreign Asset Control “so only legitimate,
law-abiding people can use the SOV”.
BSS/AFP/GMR/0936 hrs