A new star on the crypto sky

Marshall Islands will create their own digital currency. This becomes the first country in the world to recognize the crypto currency as a legal means of payment.

A small Pacific island country passed the Law on Sovereign Currency to create a Sovereign as a legal currency, after several days of debate.

This crypto will have the same status with US dollars, and unlike other crypto-crawlers, users will have to reveal their identity in order to use it.

"This is a historic moment for our people, the final issuance and use of our currency, alongside the US dollar," said President Hilda Heine in a statement. "This is yet another step to manifesting our national freedom."

The Marshall Islands use the dollar as their currency in accordance with a special agreement by which the United States gives the country about $ 70 million each year and has a military base on one of the islands. In 2023, US aid will fall by half to $ 30 million, "causing great risk to the stability of the country's budget," the state said.

The Pacific Islands country will issue 24 million SOVs in the initial currency offer. Half will go to the government and the other half into Israeli company Neema, which will sell part of the currency under a partnership to launch a crypto currency. Some lawmakers were worried about the amount of currency that would go through the company, while others argued that money could be used for urgent needs of the country.

It is also planned that 2.4 million SOVs will be distributed to 67.000 citizens. Six million SOVs will be sold to international investors.

"We are excited that we are the first country in the world that has jumped in the age of digital currencies. Ten percent of ICO revenue will be directed to the Green Fund to help combat global warming effects from fossil fuels of large industrialized countries, and most of all damage to small island nations, "he said.

Last month, Venezuela was the first country to launch its own crypt, Petro. No other country has made the crypto a legal means of payment, although several countries have accepted it as a means of payment. Israeli tax authorities recently announced that the crypto is taxable assets, and sellers will have to pay capital gains tax of 25 percent.