For the first time in history, a sovereign nation has recognized Decentralized Autonomous Organizations as legal entities.
“A unique moment” in the blockchain revolution
The Marshall Islands are an archipelago in the North Pacific hosting roughly 60,000 inhabitants. They are no stranger to crypto, though. In March 2020, they partnered with Alogrand for the launch of a Central Bank Digital Currency.
Bobby Muller, co-founder of MIDAO and former chief secretary of the Marshall Islands, called this a unique moment to lead the blockchain revolution. He hopes that DAO plays a key role in creating more efficient and less hierarchical organizations, adding:
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 next step in crypto adoption
Although being the first nation-state, the Marshall Islands are not the first jurisdiction to legally recognize DAOs. They were precedented by the US state of Wyoming in July 2021.
Nevertheless, this is a sign that global crypto adoption is moving forward. In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender. They followed up two days with the announcement of a whole city to be built, financed by Bitcoin-backed bonds.
Since then, the island archipelago of Tonga also expressed interest in adopting Bitcoin. Most recently, Russia announced that they want to adopt a more positive stance on cryptocurrencies, only weeks after the Russian central bank thought loudly about a blanket crypto ban.