Because of plans to create a national cryptocurrency the President of Marshal Islands is facing a challenge
Hilda Heine, who is the 67-year-old President of Marshal Islands, was one voice away from a no-confidence vote. One of the main reasons for this situation, which has developed in the government of the Pacific island state, was the plan to introduce the national digital currency into circulation.
However, despite the reaction of the opposition and international financial institutions, Finance Minister Brenson Wase said that if they meet the requirements of the International Monetary Fund, the United States of America and the European Union, the government intends to implement its plans to issue a national digital currency. They hope that the new cryptocurrency will be no less popular and recognized in the Marshall Islands, as well as the US dollar, and also make it possible to extract additional profits for the Marshall Islands budget.
At the same time, the International Monetary Fund sent a warning to the Government of the Marshall Islands in September that plan to issue national digital currency as a legal tender in a state can be costly and cause more economic damage than bring benefits if it is not timely to take certain measures. In this regard, the IMF rather does not recommend the Marshall Islands government to issue its national digital currency and put it into circulation as one of the main means of circulation.
Problems besides the national cryptocurrency issuance plan
Opposition to the current president, the only female president in the Pacific, is led by former Marshall Islands president Casten Nemra. In addition to showing mistrust to the President of Marshal Islands because of the plan to bring the national cryptocurrency into circulation, Nemra accuses Hilda Heine of undermining the sovereignty of the island nation. This is explained by the fact that President Heine supported the transformation of one of the atolls into an offshore zone, in which China is interested.
After the United States of America conducted nuclear tests at Marshall in the middle of the 20th century, the United States created the Marshall Islands Trust Fund to compensate damage to citizens of an island nation affected by radiation. A billion dollars was lost from this fund, and the incident was not investigated, in connection with which Kasten Nemra also accused the Heine government of the absence of the results of this investigation.
In general, the opposition is trying to shake the chair under President Heine, using all possible arguments, including plans to issue a national cryptocurrency, in relation of which the International Monetary Fund sent a warning to the Marshall Islands Government.