The Republic of the Marshall Islands today announced the establishment of the SOV Development Fund, a Marshallese not-for-profit organization. The Fund’s mandate is to support the government in the establishment, maintenance and implementation of the SOV, the Marshall Islands’ digital legal tender.
In a pre-recorded video presentation to the Blockchain for Impact Summit at the United Nations Headquarters in New York, the Minister In Assistance to the President, David Paul said: “We are designing SOV in a way that will not place any burden on the government’s finances. The currency funds itself.”
Dr. Peter Dittus, Chief Economist for SOV and former Secretary General of the Bank for International Settlements (BIS) explained: “The SOV Development Fund’s mandate is to maintain the SOV infrastructure long term; to seed the ecosystem around the SOV; to promote the SOV and its uses, both domestically and internationally; [and] to smooth the volatility of the SOV by selling and buying SOV against USD.”
The SOV Development Fund will be fully independent, with a board of seven directors. Two directors will be nominated by the government of the Marshall Islands, and two will be nominated by SFB Technologies, the company hired by the government to develop SOV’s compliant blockchain infrastructure. These four directors will then unanimously appoint three further directors, elected from among internationally recognized luminaries in the fields of blockchain, banking, and monetary management.
Qualified majorities will be required for all major decisions, to ensure the fund operates with prudence and stability and adheres to its mandate. Once the SOV is established, the goal is to transition to an alternative governance model based on blockchain. Specific technological solutions are still being investigated.