Marshall Islands creates virtual money

The tiny Pacific nation The Marshall Islands says it's become the first country to recognise a crypto-currency as its legal tender.

The tiny Marshall Islands is creating its own digital currency in order to raise some hard cash to pay bills and boost the economy.

The Pacific island nation says it became the first country in the world to recognise a crypto-currency as its legal tender when it passed a law this week to create the digital "Sovereign", or SOV. In the nation of 60,000, the crypto-currency will have equal status with the US dollar as a form of payment.

Venezuela last month became the first country to launch its own crypto-currency when it launched the virtual Petro, backed by crude oil reserves.

The Marshall Islands said the SOV will be different because it will be recognised in law as legal tender, effectively backed by the government.

Published 3 March 2018 at 7:54pm
Source: AAP