Marshall Islands, against wishes of US Treasury and IMF, is launching state-crypto

16 Feb, 2019
by Arthur Sillers
Marshall Islands, against wishes of US Treasury and IMF, is launching state-crypto

According to Finance Magnates, the Marshall Islands is moving ahead with creating a state-cryptocurrency, joining a number of state entities.

The Republic of the Marshall Islands (RMI) has been working with experts who previously helped Malta create blockchain policies to develop a national currency which is crypto-based. Currently RMI’s economy is still largely managed by the US treasury, and uses USD as its state-currency. Its plan is to create a cryptocurrency, called the  Sovereign (SOV), which will circulate alongside the Dollar, but aid in granting economic independence to the island.

The RMI exists in a somewhat tenuous legal situation, operating as an independent territory for the past 40 years while still remaining tied to the United States economically. The SOV’s project is to for the island nation to take ‘another step of manifesting our national liberty,’ according to president Hilda C. Heine.

The cryptocurrency, which has been under development for some time, has been questioned by the International Monetary Fund (IMF) as well as, unsurprisingly, the US Treasury.

The IMF, according to a press release from September, have highlighted economic risks in introducing a parallel currency. While the IMF has remained cautiously supportive of introducing crypto to compete with traditional financial banks, they have some reservations on the ability for regulation to keep crypto on a national level well-regulated.

The US Treasury, for their part, have endorsed these arguments, though they more transparently have a vested interest in keeping Marshellese banks exclusively dependent on their regulatory oversight over nations south of their border.

Either way, the SOV project appears to be moving forward, joining countries like Iran in creating centrally-backed cryptocurrencies, often seemingly specifically to reduce the effects of US international foreign economic policy.

Read more: Wyoming is first state to grant property rights to crypto holdersLiechtenstein post office now offers crypto exchange  

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