Marshall Islands Authorities Condemn The Idea Of National Token
The Parliament of the Marshall Islands announced a vote of no confidence in the president Hilda Heine due to her policy aimed at adopting cryptocurrency. The head of the republic was planning to introduce a national token that would operate on a par with the US dollar, Radio New Zealand News reports.
Initially, the authorities approved the project of the national cryptocurrency called Sovereign (SOV). The coin was to enter the market at the end of 2018 and become an analog of the dollar, the official fiat currency of the Marshall Islands. At that time Heine claimed that issuing SOVs would be another manifestation of the national liberty.
However, the president’s idea was criticized — on November 5, eight senators introduced a vote of no confidence in Heine and her administration. According to the local constitution, the authorities should vote maximum 10 days after a motion of no confidence was declared. The meeting is scheduled for November 12, 2018. Politicians will also hold a series of debates before voting.
The opposition group is led by Casten Nemra, the former president of the republic. In his opinion, adopting cryptocurrency as national money will harm the country's reputation. He added that the Heine’s plan was also disapproved by the International Monetary Fund and the US Treasury Department.
Earlier, the IMF opposed the intentions of the Republic to introduce digital assets as the second national currency alongside the US dollar, pointing out macroeconomic and financial stability risks. On the contrary, President Heine thus intended to improve the economic situation in the country and to reduce the probability of the Marshall Islands isolation from the international financial system.
Previously, Venezuela started trading its national token Petro.