The Marshall islands (RMI) has selected blockchain firm Algorand as technology partner for its national digital currency.

Later first revealing its planned digital currency — the Marshallese Sovereign (SOV) — back in February 2022, the Marshall Islands has taken a further step in the development past partnering with major blockchain startup Algorand.

SOV supply will exist algorithmically fixed to grow at 4% each yr

Co-ordinate to a March ii announcement, SFB Technologies, the company that develops SOV's blockchain infrastructure, revealed that the Marshallese digital currency will be based on Algorand technology. The Algorand protocol will exist implemented to provide the Marshallese sovereign initiative with speed, scalability, security as well as required compliance controls such equally identity management and compliance platform, the proclamation reads.

In the statement, Algorand specified that the SOV will be circulating alongside the United states dollar, which is used as the official currency in the land, and aid the Republic of the marshall islands efficiently operate in the global economy. The national digital currency initiative will be regulated by the RMI government, while the SOV supply will be algorithmically fixed to grow at 4% each year in order to forbid inflation.

The SOV initiative is positioned as the "globe's first national digital currency"

In line with previous reports, the announcement notes that the SOV will be distributed via a token pre-sale. Specifically, the national digital currency volition be introduced through a series of auctions every bit office of a time-release monetary issuance, which is expected to offset this year, the declaration notes.

Kenneth Kedi, Speaker at the RMI Parliament, expressed positive views on the new technological partnership, challenge that the add-on of Algorand strengthens the squad behind the SOV initiative as well as further development of the financial services industry in the country.

According to the announcement, the Marshallese SOV purports to be the "globe'southward outset national digital currency" as the coin volition represent a sovereign currency circulating along with the U.S. dollar. In dissimilarity to projects like the Bahamian primal banking company digital currency (CBDC), known equally Project Sand Dollar, the Marshallese SOV will not be just a representation of the local fiat currency, but rather an independent coin, a project spokesperson elaborated in an email to Cointelegraph.

The news comes amongst a new study by the Banking concern for International Settlements claiming that none of the 17 global CBDC projects analyzed past the BIS is focused on facilitating cantankerous-edge payments.