- Marshall Islands will launch its own cryptocurrency, called SOV, this year
- The delays in the project highlight the issues cryptocurrency world has to deal with
- It is possible that other countries will follow the route chosen by the Marshall Islands if their experiment proves to be successful
The country of Marshall Islands is getting ready to launch its own cryptocurrency, called SOV. It is being developed by the Israeli company Neema. The launch of the SOV will happen sometime this year, although no date has been specified.
Highlighting the Important Issues
Initially, the launch of the SOV was scheduled earlier, but due to the instability of the cryptocurrency market following the late 2017 bull run, the project had to be postponed. This situation shows that even the projects with the potentially ground-breaking technology or use cases are vulnerable to the unpredictable cryptocurrency market price movements.
While stablecoins can be considered a solution to this problem for the end user, the same cannot be said for the crypto projects. Most of them are financially dependant on the price of their tokens, meaning that a sudden plunge in price can force them to slow down the development pace or even lay off staff.
Another issue is the resistance to cryptocurrencies from the US and European regulatory organs. So, the plan of the Marshall Islands has been criticized by the International Monetary Fund, the US Treasury Department and bank officials. However, as all these institutions see cryptocurrencies as a threat to the traditional financial system, it only confirms crypto asset potential.
The regulatory organs insist that crypto can be used for money-laundering. Barak Ben Ezer, the CEO of Neema, disagrees, stating that the SOV will eventually become one the safest monetary systems in the world.
A Start of Something Big?
Although the Marshall Islands is not the first country to develop its own cryptocurrency, it might be the closest to developing a true, non-centralized one. The country, which is one of the most popular offshore zones, follows trends closely; because the population is only 55 000 people, Marshall Islands can change its legislation quicker than the large, conservative countries.
Cryptocurrencies are the latest trend. The country saw the implementation of state cryptocurrency and creating a favorable environment for blockchain-based businesses an opportunity to attract even more businessmen, boosting the economy.
Only time will tell whether other countries will follow suit; for now, the development of own cryptocurrency remains an attractive possibility. One can assume that the results of this Marshall Islands’ experiment will be a major factor in the decision of other countries.