The Marshall Islands native digital currency Marshallese Sovereign (SOV) will be built on Algorand blockchain. The world’s first national digital currency SOV will circulate alongside the US dollar (USD) to help the country “efficiently operate,” in the global economy, announced SFB Technologies on Monday.
SFB Technologies is the appointed organizer for the SOV who has chosen Algorand’s open-source, pure proof-of-stake (PoS) blockchain protocol for its “speed, scalability, security and its ability to effectively implement required compliance controls and the transaction finality needed for a national currency.”
The selection of Algorand was after “extensive market research” said Jim Wagner, co-founder and CTO of SFB Technologies.
“The company has already powered several mainstream use cases and thanks to its unique features the platform has the functionality required to issue, manage and distribute the SOV on a global level. This partnership ensures that the SOV will be built on a scalable and secure platform,” said Wagner.
The government of the Marshall Islands will oversee the SOV whose supply will be algorithmically fixed to grow 4% each year to prevent runaway inflation.
“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,” said Kenneth Kedi, Speaker of the Marshallese Parliament.
These SOV currencies will be introduced through a token presale, in a series of auctions as part of a time-release monetary issuance (TRMI) expected to begin this year.
Alogrand meanwhile is “proud” to support the Marshall Islands on its “groundbreaking journey towards mainstream digital currency adoption,” said Silvio Micali, founder of Algorand.
Algorand’s native cryptocurrency ALGO is meanwhile trading at $0.375, up 0.31%, so far in 2020, it has gained 66.35%.