The Marshall Islands government has signed a change in the law, making their own cryptocurrency the new official currency, and doing away with the US Dollar. The sovereign will be accepted over the U.S. Dollar in the country.

The Marshall Islands have a population of 53,066, which means the change is not exactly widespread. However, the change is still significant to the resident population since the banks and credit card companies have no other choice than to accept the cryptocurrency.

The U.S. Dollar will still be accepted in the Marshall Islands; however, the sovereign will be the official legal tender. Top officials from the Marshall Islands confirmed in February that the Pacific Republic would produce a cryptocurrency of its own to be circulated as the legal tender.

The country’s parliament approves of the digital coin. David Paul, minister-in-assistance to the president of the Marshall Islands said –

“As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.”

As is normal with the launch of a cryptocurrency these days, the sovereign will be launched with an initial coin offering. The supply of the ICO is capped at 24 million tokens which is a precaution against inflation. A token presale for investors will be launched soon.

Being a UN member and a sovereign state, the Marshall Islands creating a cryptocurrency will have a large impact on banks globally. Advances in legalized cryptocurrencies will have a huge impact on the world economy in coming years.