According to a press release published January 28, 2019, Tangem, a company in the business of producing blockchain smart card wallets, is set to issue the physical notes of the Sovereign (SOV) – the world’s first ever “decentralized digital national currency”. The landmark decision to launch a national digital currency is taken by the Republic of Marshall Islands.
World’s First Digital Legal Tender
In a first, the Republic of Marshall Islands (RMI) will add SOV, the newly christened national digital currency to its list of recognized legal tender. As written in the press release:
“Once issued, SOV will join the U.S. dollar as the official legal tender of the Republic of the Marshall Islands (RMI).”
Retaining the benefits peculiar to blockchain technology, SOV will allow rapid, cheap, and global value exchange without running the risk of corruption.
In a bid to ensure that all citizens of the Marshall Islands have equal access to their digital currency Tangem has joined forces with the bodies behind the SOV. Thanks to the offline nature of SOV, people who do not have access to the internet will face no problems moving their digital holdings.
To substantiate, SOV will leverage DLT by allowing immediate transaction validation with zero fees. Further, Tangem’s banknotes will minimize the technical infrastructure burden on the Marshall Islands as they facilitate off-chain physical circulation of the SOV among all holders.
About Tangem Banknotes
Per the press release,” each Tangem card will take the form of a unique physical banknote”. The card will have a blockchain-powered microprocessor inside and will amalgamate the benefits of paper bank notes with blockchain’s security.
The release also notes that each of these digital banknotes will be 100 percent decentralized, transparent, and “represent a controllable mechanism of currency issuance and circulation for the state.”
Unlike paper money, the authorities behind SOV might have put an upper limit on the number of digital banknotes that can be issued within a certain period of time. A fixed supply quantity can vastly help to mitigate the risk of economic catastrophes like hyperinflation, recession, and others.
Andrey Kurennykh, the co-founder of Tangem, shared his thoughts on the development. He said,
“We are excited to partner with the Republic of the Marshall Islands to do something that has never been done before: issue a digital currency as official legal. As the IMF has noted, the world is moving towards the widespread adoption of digital currencies, and we are excited to support the birth of the new global digital economy.”
David Paul, Minister-in-Assistance to the President of the Marshall Islands also shared his enthusiasm regarding the partnership with Tangem, stating that the Marshall Islands is looking forward to creating the world’s first sovereign digital currency.
The move by the Marshall Islands should hardly come as surprising. BTCManager reported on November 15, 2018, how the IMF head, Christine Laggard urged the central banks the world over to consider using national digital currencies.