Cryptocurrency Causes Political Crisis In Marshall Islands
Hilda Heine, the head of the Marshall Islands, almost lost the presidency because of her policy, aimed at cryptocurrency adoption. She was just one vote short from the resignation, according to Nikkei Asian Review.
Previously, Heine faced a vote of no confidence due to her effort to launch a national token. Several government members believed that the cryptocurrency could harm the country’s reputation. On Monday, November 12, 2018, politicians voted for the resignation of the president, but the decision did not get the required 17 votes. Sixteen members of the parliament opposed the cryptocurrency policy of Heine, but as many supported it.
The current Marshallese president is promoting the idea of the national token, Sovereign (SOV), which will function on a par with the US dollar, the country's official currency. The parliament at first approved the draft, and Heine said that the release of SOV would be another manifestation of the national liberty. However, the opposition came on later, headed by the former president Casten Nemra.
The country's government cooperates with the Neema startup from Israel. The crypto enthusiasts reportedly succeeded to convince the politicians that the project would bring around $30 million, of which the company would take a half.
Meanwhile, Brenson Wase, the local finance minister, claimed that the Marshall Islands will continue to pursue the idea of a state-backed token. He added that Sovereign will be ready to fulfill the International Monetary Fund requirements, as well as those of the American and European governments.
Earlier, the IMF discovered a negative impact of cryptocurrency on the global economy.