Many countries are now taking bolder steps in the move towards crypto adoption. As it moves its plans forward, the Republic of the Marshall Islands (RMI) has said that its national digital currency will be powered by Algorand’s technology.
On Monday, Algorand officially announced that the currency, SOV, will use its technology. According to the Marshallese Parliament’s Speaker Kenneth Kedi, the partnership will be a beneficial one.
“I am excited about the technological partnership with Algorand. With it, a strong alliance is forming to develop the SOV project. This is another milestone towards developing the Marshall Islands financial services industry.”
The RMI first announced plans for its national digital currency back in February 2018. At the time, the Islands said the currency will be released with an initial coin offering (ICO). It also said that it will allow free trading. Currently, the Islands’ official currency is the U.S. dollar.
The announcement gives further details about SOV. It says that the asset’s supply will be “fixed to grow at 4% each year to prevent runaway inflation.” It also confirms that the coin will be made available via a sale.
The announcement also presents the SOV as the “world’s first national digital currency”. It says that it will be different from other national currencies because it will stand on its own and not just as a digital form of its fiat.
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