Swiss-based cryptocurrency hardware wallet manufacturer Tangem has reportedly won a contract with the Republic of the Marshall Islands to issue ‘physical banknotes’ for its decentralized cryptocurrency Sovereign (SOV).
According to a recently published press release, Tangem will issue the banknotes so these can be used to store SOV tokens, which are going to be launched as an alternative legal tender to US dollar.
The physical banknotes, described as a “controllable mechanism of currency issuance and circulation for the state,” with a “secure blockchain-enabled microprocessor inside,” offer the Marshall Islands’ citizens “immediate” transaction validation, and zero-fee transactions that won’t require an internet connection.
David Paul, a minister-in-assistance to the Marshall Islands’ president, was quoted as saying:
Tangem will help us ensure all citizens, including those living on more remote outer islands, are able to easily and practically transact using SOV.
Tangem, which recently received a $15 million from Japanese financial services firm SBI Group, noted the physical notes will allow SOV tokens to circulate off-chain and give citizens the advantages traditional banknotes have, while being powered by blockchain technology.
Andrey Kurennykh, the company’s co-founder, was quoted as saying that the International Monetary Fund (IMF) has stated the world is “moving towards the widespread adoption of digital currencies, and that the firm is “excited to support the birth of the new global digital economy."
As CryptoGlobe covered, however, the IMF has advised the Marshall Islands not to go forward with the introduction of the SOV, as the issuance of a decentralized digital currency would “increase macroeconomic and financial integrity risks, and elevate the risk of losing the last U.S. dollar correspondent banking relationship.”
The country is seemingly, however, moving forward. Earlier this month, it hired Steve Tendon, the head of blockchain consultancy firm ChainStrategies, as its cryptocurrency advisor.