On February 26, 2018 The Republic of the Marshall Islands’ legislature passed a law making SOV the new legal tender of the Marshall Islands.
This means that — unlike Bitcoin, Libra, and other cryptocurrencies — SOV is money, just like the dollar or the euro.
SOV and the underlying SOV chain have been designed with Marshallese values at heart.
The supply of SOV is algorithmically fixed, so it grows slowly and sustainably and cannot be manipulated by governments or banks.
Anyone can use SOV, and new SOV are distributed fairly among all SOV holders.
SOV’s compliance protocol ensures every SOV user undergoes compliance checks with a registered verifier, but user details are kept private.
SOV is easy for everyone to use, and easy for institutions to secure and regulate.
The Republic of the Marshall Islands is a country of around 50,000 people living on 1,100 islands scattered across 750,000 square miles of the Pacific Ocean.
At an average elevation of just 2m above sea level, the Marshallese are at the forefront of the global battle against climate change.
The Marshall Islands has been championing a global response to climate change based on international cooperation and sustainable use of resources. In doing so, they have come to realise that a similar approach is needed for money.
The result is SOV, the first fair and sustainable government currency.
Our Money is broken. Cross-border finance is inefficient, needlessly complicated, and prohibitively expensive. The patchwork of international regulation is dense, opaque, and easy to circumvent.
Governments and banks can create new money at will, Bad actors exploit the ease with which traditional government currencies and cryptocurrencies can cross borders to launder money and finance terrorism. Worst of all, billions of people are unable to access even basic financial services due to cost or lack of access.
SOV is a digital currency. Every transaction is stored on the SOV blockchain, ensuring transparency, security and reliability.
When the SOV chain first launches, 24 million SOV will be created. Of these, 40% will be available for sale to people around the world.
Each year, the supply of SOV will increase by just 4%. This rate has been chosen to promote long-term sustainability and is algorithmically fixed by the SOV blockchain, so the supply cannot be manipulated. This increase goes to the SOV holders and miners - not to the banking system as in traditional finance.
Like all resources, money cannot be limitlessly exploited. Our global addiction to creating money is sending us towards a cliff edge. We need a new and sustainable approach.
SOV removes the temptation to overexploit the money supply by fixing its increase at 4% annually. What’s more, everyone benefits when new SOV are created, not just banks and governments.
How Traditional Money Works
Governments and banks can create money by printing currency or issuing loans.
This is necessary to keep economies liquid, but every time it happens it devalues the money in your pocket.
And when this practice runs rampant, the consequences are catastrophic
How SOV Works
SOV is still issued and overseen by a government, which allows it to be regulated.
But supply growth is algorithmically fixed at 4% each year, which prevents runaway inflation.
To ensure fairness, this new supply is automatically sent to all eligible users.
The SOV exemplifies the Marshallese approach to the global problems we all face: leading the way with simple, secure, fair and sustainable solutions which can benefit the whole world.
Traditional money has many shortcomings, which manifest differently in Tanzania, Venezuela, the United States, and the Marshall Islands. Although SOV has been designed to address the problems of a small Pacific Island nation, its innovations are universal and adaptable enough to help people around the world.
Easy everyday purchases
Banking with regulatory clarity
Fast, cheap, secure transactions
Sustained long-term value