SFB Technologies announced on March 02, 2020, that it would be using Algorand technology for building Marshallese sovereign (SOV), the world’s first national digital currency.
A few years ago, the Republic of Marshall Islands (RMI) revealed a plan to launch its own cryptocurrency, and now while collaborating with Algorand, a major blockchain startup, it has taken a step forward in the development of the digital currency.
According to the report, the Algorand would help the SOV to get speed, scalability, security and required compliance control. The report further stated that the SOV would be circulated alongside the United States official currency. While working with SOV, Algorand would help the Marshall Islands to work efficiently in the global economy.
The report mentioned that on one hand, the RMI Government would manage the initiative and on the other hand, the SOV would be fixed algorithmically, to grow at 4 percent every year so that it could avoid inflation.
In February 2018, when the RMI announced to launch its own cryptocurrency, it mentioned that it would distribute SOV through pre-sale.
While talking about SFB’s partnership with Algorand, the co-founder and the CTO od SFB Technologies, Jim Wagner stated that before collaborating with Algorand the firm did extensive market research. Wagner further said, “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”.
As per the report, earlier, Bahamas also launched its own digital currency, Sand Dollar, which is the representation of the local fiat currency but the Marshallese SOV would not be so, it would be an independent currency.