With the crypto assets used for a variety of purpose, however, at present Marshall Islands President suffers from major setbacks while attaining no-confidence vote due to introducing National Crypto Plans. Hilda Heine, the President of the Republic of the Marshall Islands faces a vote of no confidence due to her administration plans to set up a national ‘Digital Currency as reported by Radio New Zealand News (RDZ) on 5th November.
Further elaborating the matter, Marshallese parliament initially introduced the national digital currency naming – the Sovereign (SOV) in February 2018. The SOV was expected to be issued at the end of 2018, with this it would be used with the U.S. dollar which can be used as officially currency. Further speaking to the subject matter, Heine said “ the introduction of the SOV is “another step of manifesting our national liberty.”
Recently a group of eight senators introduced a vote of no confidence in the Heine administration. Let us not forget that the motion must require to pass by a simple majority in order to win the vote.
Amid this, Casten Nemra, the former president of the country criticized the introduction of a digital currency stating that “a digital currency as legal tender had a negative impact on the reputation of the country.”
The story is not confined up to here. The financial organizations from around the world also included International Monetary Fund (IMF) and the U.S. Treasury Department have criticized profusely about the new age of currency.
With this, in September 2018, the IMF has already urged the Marshall Islands government regarding the risk factors of cryptocurrency. Further, the IMS stated in its statement that “it will pose risks to the country’s financial integrity, as well as relationships with foreign banks.” With this, it recommended Marshallese authorities to rethink the entire concept of launching the digital currency until the government comes with the strong policy framework for the perspective.
Let us not forget that Heine’s formally announcement pertaining to the introduction of the state digital currency came at the same time especially when Venezuela set up its own national cryptocurrency namely – Petro. The currency was designed such that it to evade the U.S. and E.U. sanctions which affected negatively the country’s economy.
With this, Nicolás Maduro, Venezuelan president officially announced to set up the Petro-funded crypto bank in order to assist initiatives from youth and students.