Meet the place set to introduce the world’s first legal tender cryptocurrency

Nearly 70,000 residents of the Marshall Islands are shortly to have a government-backed alternative to the American dollar…

The parliament of the Marshall Islands represents some 1,100 islands in the south Pacific Ocean. Located between Australia and Hawaii (see the map below), it’s a sovereign nation. What’s more, it’s now a sovereign nation with a financial world’s first to its name.

The location of the Marshall Islands, in the south Pacific Ocean.

The aforementioned parliament passed a new law yesterday that doesn’t just welcome cryptocurrency, it positively embraces it. For the Republic has now declared that it’s launching its own coin – the Sovereign (SOV) – that’ll be used as legal tender. The main currency of the Marshall Islands is currently the American dollar, and the Sovereign will be circulated alongside it.

The aim is to have the state-backed Sovereign available before the end of the year, and if it hits that target, the Marshall Islands will offer the first government-backed coin of its type in the world.

Furthermore, the government of the Marshall Islands is looking to use the ICO towards funding healthcare, in particular for those affected by nuclear testing in the area.

The Republic of the Marshall Islands confirmed that it’ll instantly recognise the SOV as legal tender, accepted as freely as regular currency. It’ll tie the wallets for the Sovereign to its citizens’ ID and fingerprints, and the long term aim is believed to be to make the Sovereign the official currency of the area, usurping the dollar. With nearly 70,000 residents in the area, it’s a Coin that should make an instant splash, too.

Details of the ICO are expected in the coming months.

Images: BigStock