Different nations and states in the world have encouraged the adoption of cryptocurrency in the best way. However, there are still some locations where there is still a need for the proper establishment of blockchain technology in the best way.
This is exactly the case with the amazing Pacific Island State. The particular nation has been pretty keen on the adoption of blockchain technology for a very long period of time. Well, according to the best website for cryptocurrency news, this dream has finally come through since the Marshall Islands is now considering DAOs or Decentralized Autonomous Organizations as entities that are actually legal.
The Republic of Marshall Islands recognizes these organizations that are more popularly known as DAOs as legal. This is a particular move that has managed to collectively own and manage the different blockchain-related projects and given formal recognition to these projects all across the entire globe.
DAOs or the Decentralized Autonomous Organizations are basically described as entities that are based on blockchain and have been governed by some communities that are self-organization. The good news is that these islands have managed to get recognition as legal entities in the Marshal Islands since the country managed to amend the Non-Profit Entities Act of 2011.
Due to the incorporation of the amendment, the platform for crypto trading Shipyard Software was allowed to incorporate the country’s very first DAO which was named Admiralty LLC. This particular incorporation had certain aid from MIDAO Directory Services Inc.
which is basically a proper domestic organization that was created in order to extend a helping hand towards the registration of DAOs in the Marshall Islands without any trouble.
According to the very new legislation, any DAO is allowed to properly register as well as establish their operations in the Marshall Islands. Bobby Muller, the former chief secretary of the Republic of the Marshall Islands and co-founder of MIDAO, mentioned that his country recognizes that now is a “unique moment to lead” in the “blockchain revolution.” He said DAOs will play an important role in creating “more efficient and less hierarchical” organizations.
In a written statement to Cointelegraph, Muller said the Marshall Islands is looking to become a global hub for DAOs, “both in registering and domiciling, but also in developing out use cases and furthering mass adoption.” He further explained:
“The strategy is to provide the lowest cost for incorporation, a supportive government that has internationally recognized courts, and a receptive environment to technological advancements.”
The Marshall Islands is an independent island state located in the Pacific Ocean near the Equator with a population of around 59,000 as of 2019, according to the World Bank.
The island state has been actively exploring use cases for digital assets since at least 2018, with the government introducing measures to create a blockchain-based cryptocurrency that would be recognized as legal tender alongside the United States dollar.
From the report of news sites, the Marshall Islands already permitted the making of a new cryptocurrency, which was to be named Sovereign (SOV), in the month of February 2018.
As it is expected by now, the International Monetary Fund, or IMF, has definitely shown its criticism towards the plan stating concerns that establishing a digital sovereign currency would weaken the financial stability of the state.
The Washington-based lending institution has levied similar criticisms toward El Salvador, which became the first country to recognize Bitcoin (BTC) as legal tender.
However, Marshall Islands senator David Paul has made an emphasis on the fact that the country’s DAO legislature doesn’t contain the same difficulties as a state-backed cryptocurrency.
“A sovereign digital currency is financial and generates a lot of concerns from a money-laundering perspective,” he mentioned to Cointelegraph in a proper written statement. “It’s a different realm for DAOs, as this is more about giving them legal recognition to make their case to regulatory bodies, investors, and consumers.”
