No Confidence Motion Called For Marshall Islands Cryptocurrency on November 12, 2018

No Confidence Motion Called For Marshall Islands Cryptocurrency on November 12, 2018

November 7, 2018 Off By Maheen Hernandez

The president of the Marshall Islands is in support of a national cryptocurrency, the plans for which are underway.  However, she has faced a political attack for supporting the idea of a national cryptocurrency.  If the cryptocurrency plan is successful, it will discourage the other leaders from openly welcoming the new technology as opposed by IMF.

About 8 Marshallese Senators early on Monday, introduced a no-confidence motion against President Heine as she backs the plan of the national digital coin.

Neema is an Israeli remittance startup.  Neema has been promoting the digital Sovereign (SOV) of the Marshall Islands that was announced back in February.

The major point reinstated by those who are against the coming of the national digital currency is that it will hurt the reputation of the company abroad.

Heine in response to the emphasis of the leaders stated “I do not see an indication of us being harmed as this is not an illicit activity. This is not illegal.  Our laws will not be tarnished,”

A “no confidence motion” has been called for on November 12, 2018.  This move has been due to the opposition to the digital currency.  The president and the opposition will discuss their respective concepts on cryptocurrency in the parliament.

About 8 Marshallese senators introduced the no-confidence motion against President Heine.  The opposition is of the opinion that the potential benefits from the digital currency revenue gains are a lot smaller when compared to the potential costs that come from economic risks, reputation risks, Anti-money laundering and combating the financing of terrorism based risks and governance risks.

Without adequate measures to mitigate the risks, the authorities will be able to seriously reconsider the issuance of the digital currency as a form of legal tender. It is up to the results of the no-confidence vote that will decide the furtherance of the digital currency in the Marshall Islands.

In several other Island jurisdictions, like the Caribbean, they are as well exploring the blockchain technology. However, if the IMF opposes the move, and deters them from issuing digital assets, then the concept of digital currency will be the playing field only for the countries antagonistic to the West like Iran, Russia, and Venezuela.

Reportedly, Forbes did publish on October 9, 2018, that the IMF has issued warnings concerning the Bitcoin, Crypto and Stratospheric highs of their prices. And financial regulators from around the world are experiencing mixed success rates.

Several smaller nations are getting interested in having their own digital currency.  Whether they will feel discouraged by the moves of the IMF or if they will continue confidently will depend upon the example set by the nations fearing IMF.

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