The Marshall Islands, a country in the central Pacific Ocean is planning to launch its cryptocurrency known as Sovereign (SOV) this year.

According to taipeitimes, The Officials at the Marshall Islands said that there is some work which is remaining so it’s in a process of development. Also, they are concerned about US regulators regarding the SOV.

Barak Ben-Ezer, chief executive officer of Neema, an Israel-based company said they are working with the Marshall Islands government to create the cryptocurrency.

Ben-Ezer also added that,

“We plan to launch SOV this year”

They are working hard to prepare the launch of the SOV initial coin offering said Ben-Ezer. He also said they are waiting for the market to show a positive response on cryptocurrency because since 2018 the value of cryptocurrency has fallen down.

Once the SOV is ready and stakeholders are convinced and all risks are mitigated then they will launch the cryptocurrency.

US regulatory concerns for SOV

The Marshall island and Neema are working to solve the concerns of the US regulatory. This plan of launching national cryptocurrency has been criticized by the US Department of the Treasury, the IMF and bank officials in the Marshall Islands.

The officials said, Launching Cryptocurrency SOV could affect present banks and also might increase money laundering. But Ben-Ezer says once it is released they will know that it is the safest monetary system.

Ben-Ezer mentioned said The US Treasury has concerns on,

“anonymous digital currencies, such as Bitcoin, [which] are often used for illicit purposes by people who want to conceal their identity,”

Ben-Ezer explains about SOV that this would not be the case because each and every account will be fully identified. Buyers of SOV will be monitored by the US Treasury’s Office of Foreign Assets Control. Thus SOV is safe and legitimate where law-abiding people can use the SOV.

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