President Survives Impeachment, Country to Continue Developing National Crypto
A proposed plan to develop a national cryptocurrency for Marshall Island almost cost its president her job. Moreover, President Hilda Heine of the Marshall island generally supported the idea of creating a national cryptocurrency. The backing of the plan annoyed eight ministers in her government who called for a vote of no confidence against her.
The ministers raised concerns about the economic risks associated with the introduction of cryptocurrency. The crypto named Sovereign (SOV) is to become the islands second legal tender alongside the US dollar. The eight ministers accused president Heine of damaging the reputation of the nation by backing the proposed cryptocurrency.
The president’s survival of the looming impeachment implies the country would continue with the plans to launch the national cryptocurrency. Finance minister Brenson Wase revealed that Marshallese would now move forward with the plans for the Sovereign cryptocurrency according to a report from the Nikkei Asian Review.
The government hopes it will raise most of the funds required for the development of the Sovereign cryptocurrency ecosystem through initial allocation to foreign investors. The remaining tokens will either be kept in a governmental trust fund or distributed to the Island’s Citizens.
Marshall Island National Cryptocurrency ICO
The official statement for the Initial Coin Offering (ICO) of the Sovereign cryptocurrency is yet to come in an announcement. However, the minister-in-assistance to the president David Paul said in February that its legal tender status has already been approved by the country’s parliament.
“This creates legal certainty for its use, because all jurisdictions have laws in place for dealing with legal tender, whereas private cryptocurrencies are dealt with differently in different jurisdictions,” a government statement said in February.
A report released in September by the International Monetary Fund (IMF) warned that the new cryptocurrency still faced several challenges.
The Marshallese authorities are well aware that issuing a legal tender cryptocurrency puts RMI into uncharted waters, and that there are many risks involved in issuing the SOV, the report stated.
However, they believe they can work through these issues. They have created a high-ranking committee to examine all the risks. Moreover, these include those raised by IMF and the US Treasury. Also, the ones discussed during a public hearing on the legislation.
The international monetary Fund warned the country of the risks and danger of losing its reputation. He also mentions about subsequent loss of its correspondent banking Relationship with the USD. The report concludes cryptocurrency issuance will take few more years to sort issues at hand and finalize.