The Marshall Islands, located between Hawaii and the Philippines, will develop a blockchain-based national currency called the Marshallese sovereign or SOV, Bloomberg reported, citing a statement from the country.
David Paul, an environment minister and presidential cabinet member, spoke of the project during a conference in Singapore on Wednesday.
“With the blockchain technology in place, we thought this was an opportune time to establish our own legal tender,” Paul said. “As a small country, it’s going to be easier and faster for us to make decisions and respond to the market.”
Before developing the new currency, the country must first resolve compliance and regulatory issues with the U.S. Treasury and International Monetary Fund, Paul said.
The announcement comes as other nations or entities have announced similar projects. In June, Facebook announced plans to develop a digital currency called the Libra. And in August, the People’s Bank of China said it was close to issuing its own cryptocurrency.