The Republic of the Marshall Islands has chosen a crypto hardware wallet firm to manufacture “cryptocurrency banknotes” for its new national cryptocurrency. This is according to reports emerging from the firm today.
Swiss crypto startup Tangem announced its selection on Monday. The role will see the firm manufacture physical bank notes as a representation of value stored on the blockchain.
The notes will carry value in the new Marshall Islands Sovereign (SOV) as an alternative form of legal tender. Alongside the US dollar.
A blockchain-equipped microprocessor will secure the notes. Once introduced into circulation, customers can use them as a way of transacting and exchange in amounts denominated in the currency. There will be zero transaction fees and no need for an internet connection in order to use the cards. They provide a mechanism for immediate validation of transactions, according to Tangem.
Meanwhile, other jurisdictions around the world will be closely watching the development. Especially those known to be considering their own national cryptocurrencies. Either in complement to or in place of existing fiat systems.
Minister-in-assistance to the President, David Paul, said the partnership would be particularly helpful to those in more remote parts of the Marshall Islands. It will make it easier for them to transact for a range of everyday goods and services.
“Tangem will help us ensure all citizens, including those living on more remote outer islands, are able to easily and practically transact using SOV.”
The Marshall Islands unveiled plans to introduce the crypto-powered Sovereign last February. A number of firms have helped with the development of the project in the months since.
The plan shows how countries can use cryptocurrencies at a national level to solve real world problems.
Beyond cryptocurrencies like bitcoin, national cryptocurrencies allow governments to harness the benefits of blockchain technology. Thus allowing for faster payments, low transaction fees and a move towards a cashless economy.
Andrey Kurennykh, co-founder of Tangem, said the partnership was an exciting milestone in the development of digital currency.
“We are excited to partner with the Republic of the Marshall Islands to do something that has never been done before: issue a digital currency as official legal tender.”