By Patricia L Johnson and Richard E Walrath
Most of us have heard of “Bitcoin”, but how many of us know anything at all about the SOV? The SOV is a cryptocurrency soon to be released by the Republic of the Marshall Islands, the small group of islands in the Pacific Ocean.
The SOV is not the first cryptocurrency to be launched by a foreign country. Last month Venezuela released the virtual Petro, backed by crude oil reserves.
What’s different about the SOV is the fact it will be LEGAL CURRENCY, backed by the government. The SOV will be equal to the U.S. Dollar as a form of payment.
What’s interesting about the SOV is the fact the Republic of the Marshall Islands will be working with the Israeli Company, Neema. The Republic of the Marshall Islands will issue 24 million SOV’s in its “Initial Currency Offering”, with 12 million SOV’s going to the government of the Republic of the Marshall Islands and 12 million SOV’s going to Neema.
While Bitcoin and other cryptocurrencies can be purchased anonymously, the SOV requires users to identify themselves. While the anonymity factor has kept many governments from supporting the cryptocurrencies in the past, this problem will be eliminated when the SOV is launched.
Six million SOV’s of the 12 million being held by the Republic of the Marshall Islands will be sold to international investors with the proceeds being used to invest in projects designed to lessen the effects of global warming and support those individuals still affected by U.S. nuclear testing.
Another 2.4 million SOV’s will be distributed to the 60,000 residents of the Republic of the Marshall Islands for their use in buying groceries, paying bills, etc.
When the launch date rolls around it will be interesting to see what happens, especially due to the fact the U.S. and Republic of the Marshall Islands are united through the Compact of Free Association, where the U.S. provides about $70 million U.S. Dollars each year in assistance, in addition to running the U.S. military base on Kwajalein Atoll.
The world is more than a little concerned about President Trump and our $20 million-dollar national debt, which will do nothing except go up due to the passage of the $1.5 trillion-dollar tax cuts for the wealthy and big business. Creating another currency could allow the U.S. dollar and this country to sink, reducing the value of everything in the U.S.
The world would like to get away from the dollar. While other countries raise taxes to pay for health care, college, and retirement the U.S passes tax cuts for the rich by going into debt. The rich already have everything they could possibly need or want so they will buy bonds with the money. Free bonds for the rich while the rest of us can look for a few more dollars in our paychecks.
The deficit will increase as will the national debt. Those two things will cheapen the dollar and on top of that the Federal Reserve will raise interest rates to ward of inflation, with a big bust coming in the stock market.
Any sort of plan to create a new global currency should be watched carefully, but especially the SOV due to the potential for worldwide acceptance of this new currency.
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