The first sole sovereign cryptocurrency has been signed into law today as the Marshall Islands - a sovereign state and UN member - has put in place a bill to make its national legal tender its own cryptocurrency.
Their new national cryptocurrency is called the Sovereign (SOV) and will be the official legal tender for businesses and the 53,000 citizens of the Pacific islands.
Breaking the news today, crypto trader and host on CNBC Africa - Ran Neuner - explained that the move for the tiny nation was significant because (in theory at least) it means that financial institutions such as banks and Visa will have to accept the SOV as it is now the legal tender of a sovereign nation:
If a sovereign nation, not under sanctions, part of the UN has a legal tender in their country, the banks must support it. Here are some docs showing that Marshall Islands meets all criteria and has signed a bill in parliament creating the world's first sovereign crypto currency pic.twitter.com/Cf4eaJuODT— Ran NeuNer (@cryptomanran) May 22, 2018
According to a report from thenextweb in April, the cryptocurrency was designed by Israeli fintech company Neema - and the project was the idea of CEO Barak Ben-Ezer who sought out nations without their own national currency for crypto adoption. The Marshall Islands - although their own republic since 1982 - use the USD as their legal tender, but will now start to use (presumably in conjunction with the USD) the new SOV cryptocurrency that was today signed into law.
While some might question whether the idea of a national, centrally-controlled currency is really in keeping with the spirit of decentralisation that motivates much of the cryptocurrency world, this new adoption - and its suggested ramifications for the banking world - are no doubt an interesting development for the space.