Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Marshall Islands on mission to create its own cryptocurrency to reduce reliance on US dollar

Marshall Islands on mission to create its own cryptocurrency to reduce reliance on US dollar

‘With the blockchain technology in place, we thought this was an opportune time to establish our own legal tender’, a minister said

An isolated island nation in the Pacific Ocean with a population of about 75,000 is on a mission to creation a blockchain
-based national currency, the Marshallese sovereign or SOV, the country said in a statement.

David Paul, the environment minister and minister-in-help to the president of the Republic of the Marshall Islands, spoke about the venture at a conference in Singapore on Wednesday.

“With the blockchain technology in place, we thought this was an opportune time to establish our own legal tender” and lessen the nation’s dependence on the US dollar, Paul said in an interview from the sidelines of the conference.

“As a small country it’s going to be easier and faster for us to make decisions and respond to the market” as a digital coin is introduced.

The country does not have a starting date set yet, as officials still need to resolve compliance and regulatory issues, and work with entities like the US Treasury and the International Monetary Fund, Paul said. In a February 2018 interview, he had told Bloomberg that plans were to issue the coin later that year.

The SOV has built-in compliance features and its supply will grow at a fixed rate of 4 per cent a year, according to the statement, which added that only verified users will be able to transact in SOV.

Newly created SOV will be sent automatically to eligible holders, including all Marshallese citizens, who will also receive an equal split of 10 per cent of the initial currency supply, the statement said.

The SOV will not be one-to-one to the US dollar – it will establish its own liquidity and be market-based, Paul said in the interview.

The announcement comes as the idea of digital currencies begins to gain traction. Facebook in June announced plans for a digital coin called Libra.

The People’s Bank of China is “close” to releasing a cryptocurrency of its own, a senior official said recently. Even Mark Carney, the Bank of England governor, floated the idea last month of a Libra-like virtual global reserve currency.

The roots of the Marshall Islands’ effort started after the terror attacks on September 11, 2001, Paul said, when the financial regulatory regime changed significantly and requirements to perform transactions become much more stringent.

“Right now we have only one relationship with one correspondent bank, and if that’s lost we would be cut off,” Paul said, identifying First Hawaiian Inc. as that bank. “A correspondent banking relationship is commercial, and a nation being held hostage by a commercial relationship shouldn’t be the case.”

The US dollar will not completely go away, at least not for the time being. People will still have the choice to use the US dollar as well as the SOV, Paul said.

“We’re committed to do it the right way,” he said. “As long as we do it in a responsible manner it’s going to withstand the test of time.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×