Marshall Islands Issuing Own Cryptocurrency
The Marshall Islands, a longtime user of the USD, is progressing with its plans to issue a sovereign digital currency on Blockchain. Interestingly they are taking the monetary supply out of their own hands with a fixed inflation of supply distributed directly to holders of the digital currency.
This will be a fascinating economic experiment and global regulators views on how this can be integrated into the existing payments system may have lessons for Libra.
The Honourable David Paul, Minister In-Assistance to the President and Environment, Marshall Islands, stated in his essay presented as a part of No Closing Bell, a series leading up to Invest: Asia 2019 that:
"Our money supply will grow at a sustainable 4% each year, following Milton Friedman’s k% rule. New SOV will be automatically distributed to the currency holders and the decentralized entities securing the network.
This means that we in government cannot modify the money supply, and we cannot manipulate the value of our currency by printing more money."