Hilda Heine, the President Of Marshal Islands, may be out of work: a group of senators initiates the process of resigning the president because of her support for the plan to issue a national cryptocurrency. The key reason for this event, which happened in the Pacific island state government, was her notion of admitting the national cryptocurrency.
Marshall Islands Finance Minister Branson Weiss announced that the government will continue to implement a plan to create a state cryptocurrency. The authorities intend to raise funds by selling half of the tokens during the ICO to foreign investors. The rest will either be kept in a government trust fund or will be distributed among the citizens of the country. They consider that the emergent digital currency will ride high and be accepted in the Marshall Islands as the American dollar. They also anticipate that the new currency unit is able to allow increasing the treasury of the Marshall Islands.
Meanwhile, the IMF sent an alarm to the Marshall Islands national administration this autumn that the strategy to release national cryptocurrency as a lawful tender can be expensive and lead to a significant economic loss (if you don’t take certain actions). In this connection, the IMF doesn’t advise the Marshall Islands authorities to release its national cryptocurrency and use it as the main medium of exchange.
Concerns beyond the national digital currency release
The political opposition to the President Of Marshal Islands, the only woman president in the Pacific, is leaded by the ex-president of Marshall Islands Casten Nemra. Eight senators of the Republic put forward a vote of no confidence in Hilde Heine. The launch of a national cryptocurrency will harm the image of the Marshall Islands, they said. “I don’t understand how it can harm us,” says the President Of Marshal Islands Hilda Hein. – “The release of the national cryptocurrency will be in full compliance with the legislative framework of the Republic so that there will be no violations.”
First, the country’s former president, Casten Nemra, said that Hein and the Senate were butting because of an investigation into the theft of $ 1 billion allocated by the United States as compensation for nuclear tests conducted near the Islands. Secondly, the current president and the Senate have a different attitude to the program proposed by Chinese investors to create an exclusive administrative zone on the Rongelap Atoll.
The IMF also warned the authorities of the Republic of adopting cryptocurrency, stating that this would create risks to the country’s financial integrity, as well as to relations with foreign banks. The regulator called on the authorities to reconsider the issue of the release of cryptocurrency until the government can provide and implement strong political restrictions.