The Republic of Marshall Island is a small country located in a remote part of the Pacific Ocean with a population of around 50,000 people. The country is heavily dependant on cross-border trade and finance, but the complexities of the system could make it very much difficult for the citizens to get certain types of goods and financial services efficiently.
Now the federal government hopes to be the first to issue a national digital currency based on blockchain technology. Officials hope that this measure could help citizens avoid high transaction charges, thus, making it easier for international partners to comply with the requirements. It would also prevent inflation as the digital currency would have a fixed supply rate. The digital currency would be based on blockchain technology, which is developed by Silvio Micali, a Ford engineer and professor at the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL). It would be commercialized by his startup Algorand.
Blockchain technology and related cryptocurrencies might disrupt the flow of global currencies and other assets. Those who are skeptical of this view say that blockchain technology is not sustainable and not efficient enough for mass adoption. Algorand believes that it has solved these challenges through a unique and scalable architecture that does not sacrifice the traditional advantages of blockchain technology, such as decentralization and security. More and more people are using Algorand for a variety of applications, from creating a market for emission allowances to optimizing real estate transactions to creating a new currency in the Marshall Islands. “The emergence of blockchain technology has opened up a world of opportunities for small countries like ours,” said David Paul, the Minister in Assistance to President. “By issuing a currency that is not embodied in the form of cash, that could immediately circulate around the world, that is absolutely safe, the Marshall Islands will eventually be linked to the global financial system on its own terms,” he further added.