LIFELabs, a blockchain startup, along with the British Virgin Islands, is developing a cryptocurrency that will act as a sovereign digital currency of the island territory.

Dubbed BVI~LIFE, the digital currency will be pegged to the US dollar on a 1:1 ratio. According to the December 3 press release, the stablecoin will reduce transactional fees, and increase transaction fees. It will also be available to tourists visiting the territory.

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Due to its lack of regulations, the British Virgin Islands is home to companies like Bitfinex and Tether, which is the largest issuer of dollar-pegged digital currency. The sovereign digital currency is a part of a broader initiative to boost the local fintech sector.

Commenting on the initiative, Andrew Fahie, Premier of British Virgin Islands, said: “The importance of blockchain technology and the significant benefits it offers the BVI, are paramount to the Territory. We welcome this innovation with open arms. Our partner, LIFElabs, has demonstrated with their proven track record that their ideology is not just mere words, and we look forward to continuing our partnership with them on the rollout of BVI~LIFE, our digital currency.”

Moving away from USD?

The British Virgin Islands is not the only island territories to jump into digital currency. The Marshall Islands, another island territory dependent on the US dollar, also developed its own sovereign digital currency.

Meanwhile, the blockchain startup is also developing a Rapid Cash Response fund to offer aid in the event of a national emergency.

“This partnership puts us in a unique position to make a massive impact in a place that really stands to benefit. The foundation of a digital currency is necessary groundwork for the British Virgin Islands to continue to serve the global economy as it has in the past with the onset of the blockchain revolution,” Sanjay Jadhav, CEO at LIFELabs.io.