Cryptocurrencies are at least partly responsible for the upheaval currently taking place on the international financial markets. Assessments of the potential of digital currencies vary widely. While some see them as the future of payment, others believe they represent a gigantic speculative bubble. Vector The Marshall Islands are the first (and at the same time almost the smallest) state in the world to plan to introduce cryptocurrencies as legal tender.
Other states, such as South Korea or Japan, only accept Bitcoin as a means of payment. But what is the difference between an accepted and a legal tender? And do cryptocurrencies really have the potential to be accepted as a means of payment online and offline in the future?
Vector Key Information
|Soft cap||10,000 ETH|
|Hard cap||156,000 ETH|
|Distributed in ICO||80%|
|Tokens for sale||40,000,000|
|Price in ICO||3.0000 USD|
|Whitepaper||Click Here For View Whitepaper|
|Website||Click Here For Visit ICO Homepage|
The Game Change Team Behind Vector
General Information Cryptocurrency
Cryptocurrencies are digital currencies that are not issued by a central bank. Instead, the basis of these currencies is a peer-to-peer network. Characteristic of cryptocurrencies is therefore the absence of a regulating organization (e.g. central bank). Accordingly, there is no possibility of intervention by a higher-level organization. The value of cryptocurrencies is determined solely by supply and demand, as they have no official equivalent value. The first digital coins were created with Bitcoin in 2009, and today there are several thousand cryptocurrencies.
In addition to Bitcoin, Ethereum, Ripple and Litecoin are now particularly popular. As a rule, cryptocurrencies use the so-called blockchain technology. Vector is a kind of logbook where it is recorded who owns the respective digital coin. The cryptocurrencies are created by calculating very complex mathematical processes (so-called mining).
Requirements for a Legal Tender
Meanwhile several countries have introduced Bitcoin as legal tender. For instance Japan and El Salvador. Vector Even the Marshall Islands had already announced in July 2018 that they plan to do just that. But what is legal tender anyway? According to the German Bundesbank, legal tender refers to “the means of payment that no one can refuse to use to satisfy a monetary claim without suffering legal disadvantages.” This means that every private person and every merchant must accept a legally recognized means of payment. In the euro area, euro cash is the only legal tender.
Only the central banks are authorized to put this means of payment into circulation. While euro coins have only limited legal tender status (no one is required to accept more than 50 coins), euro banknotes are the only unrestricted legal tender. Vector the current time, therefore, the introduction of cryptocurrencies such as bitcoin as legal tender in the euro area remains a distant vision. After all, this step would mean that everyone would have to accept Bitcoin as a means of payment without restrictions. And so far this is rather realistic for digital services bought online.
Marshall Islands To Introduced Cryptocurrency As Legal Tender
The Republic of Marshall Islands is an island nation in central Oceania. With a population of just over 50,000, the Marshall Islands is one of the smallest states in the world. The island nation recently revealed that it plans to become the first state to grant legal tender status to a cryptocurrency – as early as the third quarter of 2018. Called “SOV,” it plans to release its own cryptocurrency via a so-called Initial Coin Offering (ICO). To prevent inflation, government officials have said that a maximum of 24 million virtual SOV coins will be brought to market.
The digital currency of the island nation, which is located between Australia and the USA, is to use the well-known blockchain technology, similar to the Bitcoin model. Vector order to acquire the tokens of the Marshall Islands, the investor has to legitimize himself to the government. The wallets will also be linked to an identity token. This is intended to prevent the misuse of cryptocurrencies, for example for tax evasion, money laundering or terrorist financing.