Marshall Islands launches national blockchain currency

The Marshall Islands, a state located in Micronesia, announced the launch of a currency based on innovative technology. This initiative has matured in the republic amid the desire to achieve independence in monetary policy in such a way as to preserve the values characteristic of the Marshall Islands.

The republic’s intention to introduce a national digital currency became known last year, when the law “On Sovereign Currency” was adopted, where it announced plans to create a blockchain currency. The Marshall Islands received the status of an independent state in 1979, however, so far they have used the US dollar as the official currency for all payment transactions.

The state authorities draw attention to the fact that the intention to launch another legal tender, which is also based on the blockchain, is supported by the belief that any decisions based on centralization will not work in a country where the population is a little more than 50 thousand people who live on more than 1 thousand islands scattered in the Pacific Ocean.

The technology that underlies the currency is reported to allow the country to automate most processes, as well as reduce costs associated with existing payment systems. This decision will also allow the state to take an active part in the fight against money laundering and the financing of terrorism.

It is known that the issue of the blockchain currency of the Marshall Islands will be limited, the inflation rate will be fixed at 4% per year. This decision is due to the instability of fiat funds, the public no longer trusts traditional banks, so the state authorities decided to approach the blockchain currency with responsibility, not considering it as a kind of unlimited resource.