Why the Marshall Islands Is Issuing Its Own Cryptocurrency

Today we are progressing with our plan to issue a sovereign currency in digital form - using blockchain technology.

Last year, we passed the Sovereign Currency Act, declaring our intention to issue a new currency, the Marshallese sovereign, which we will use alongside the dollar.

Issuing a currency is of course the prerogative of any sovereign nation, but what is unprecedented is that we have chosen to issue our sovereign currency using blockchain technology.

We made three key decisions when we chose to issue our currency.

Relying on traditional fiat currency, the Marshall Islands has only fragile links to the wider world of international finance, and compliance is extremely resource intensive.

We chose to create a fixed money supply with fixed growth because fiat currencies can be remarkably unstable.

Without our own currency, and beholden to existing systems, it is hard for us to contribute much to this fight beyond basic compliance.

With a digital currency based on blockchain, we can automate much of the compliance burden and take a proactive role on the international stage.

By issuing a currency that is not physically embodied in cash, that can travel the globe instantly, and that is tamper-proof and completely secure, the Marshall Islands will finally be connected to the global financial system on its own terms.

It may seem surprising that the Republic of the Marshall Islands would be issuing a currency based on blockchain technology, but actually it's just the opposite: the Marshallese people have lived with decentralized systems for hundreds of years.