thecoinrepublic.com
To introduce digital currency in the world is a very big dream. But many in the line want to start with the digital currency route and make it easy for people to send and receive money just by the click of a button. But many nations are still immature to adopt it as they do not understand how to start with?
With the advancement of technology and payment systems, the world has woken up to work upon digital currency so as to make a hassle-free affair for each technologically savvy individual. Several financial regulators of the world are looking to design digital currencies. However, most of them vouched for expert advice on the matter. And no one knows how to start with?
Some of the countries which took the digital route have found their way to cryptocurrency enthusiasts. For them, it is against the traditional approach to finance. The launch of the digital trend allows creating virtual money for the entire nation.
Barak Ben-Ezer, an Israeli Crypto Consultant visited Marshall Island only in 2018. He flew halfway around the world to find that the Pacific Ocean archipelago adopts a national currency he designed out of his love for Bitcoin.
Marshall Island had a clean state of financial innovation. It is supported by the U.S.. the population on the Island is minuscule with just 59,000 people scattered around thousand islands and more. The island does not have its currency and central bank. The Honolulu bank is the only link for the people of the island who can do global banking and have access to the U.S. dollars which is used for everyday transactions by the people of the island.
Ben-Ezer while talking to the local officials said that the country can make its own digital currency for transactions. It would be similar on the lines of bitcoin. People can invest from anywhere in it. The only difference in the currency would be that it will be issued by a national government.
David Paul, the earlier Marshall Island cabinet member, is drawn towards cryptocurrency. He is studying cryptocurrency technology. Ben-Ezer was given the responsibility by the government to reserve for treasures and lawmakers. In a few months, the law was passed by Marshall Island, adopting his creation. He had dubbed the SOV for Sovereign as legal tender. It is a very important step for its actual issuance.
With the move that China made after launching its own digital currency pilot project Yuan, and seeing the success rate of the currency, major central banks have teams to work upon the digitization scenario. But many are looking forward to engineers with expertise in cryptocurrencies and blockchain technology.
The U.S. Federal Reserve at the Massachusetts Institute of Technology has also teamed up with cryptocurrency experts so that a digital dollar could be formed. But it is riskier for big economies. However, smaller economies will gain more with this step and will have less to lose by taking risks on a newer type of monetary technology.
As per the book published by Cornell professor, Eswar Prasad smaller nations have been more public in tapping expertise from the crypto world. Jay Joe, a Canadian had received a message from an associate in the financial technology industry about the launch of the digital version of the Bahamian dollar. The central bank was inviting bids for the same.
The central bank in the Bahamas had set the broad parameters for the Bahamian dollar. The team of Joe was working on its proposal on how a digital currency would benefit island residents far from bank branches since money would now be linked to their mobile phones. When the dollar launched in 2020 as the world’s first central bank digital currency, NZIA Ltd., Joe’s company received a joint credit for developing it.
Similarly, when Cambodia decided to use digital currency for their daily essentials, it used Tokyo-based Soramitsu. It was called on by government authorities to help them navigate towards a digital currency.
Bakong, though not a Cambodian digital currency. It has some characteristics of one as it is run by the central bank. Bakong Coin is like an exchange between different payment applications, allowing users to send and receive funds to and from anyone using their mobile phone.
Hence, the vision of Ben-Ezer for the Marshall Islands was to make it the first nation to issue a tradable cryptocurrency. It will be used to attract new financial flows. If the plan is approved, then most of the currency would be issued free to the Marshallese government and its investment funds.
Over the years, Ben’s team has also received 10% of the promotion as payment.