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IMF trying to prevent the Marshall Islands from adopting a crypto currency

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On 26 February 2018 the Parliament of the Republic of the Marshall Islands passed the Declaration and Issuance of the Sovereign Currency Act 2018, adopting in principle a crypto currency. An Israeli company called Neema would be tasked with creating this crypto currency for the Marshall Islands. This currency would be called Sovereign.

The Republic of the Marshall Islands does not have an army and its defence is guaranteed by the United States. It does not have its own currency and instead uses the dollar.

The view of the International Monetary Fund is that in the fight against capital laundering and the financing of terrorism, the Sovereign Plan offers no safeguards. For these reasons, the convertibility of the crypto currency into dollars could be blocked.

Panicked and with their hair on end, the Parliament of the Marshall Islands should make a declaration on the implementation of the Sovereign Plan on Monday 12 November 2018, and eventually, should adopt a motion of censure against the government of President Hilda Heine.

As we write, the only country in the world which has a crypto-currency is Venezuela. This currency is called the Petro. It contrast to other currencies, its value is not tied to market movements/artificial gyrations but to the natural reserves of the country. This system has enabled Venezuela to put an end to its currency being stripped of all value as it plummets down an abyss, constructed by foreign powers.

From the beginning of 2018, several countries have been studying the potential for establishing their own crypto currencies. These countries are the United Kingdom, Canada, Singapore, Turkey and Iran.

Translation
Anoosha Boralessa

Attached documents

 
IMF Report

See page 6 : "Protecting fincial stability".


(PDF - 1.4 Mb)
 
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