фото показано с : blokt.com

The plans to develop a national cryptocurrency are still intact after Hilda Heine, the president of the Republic of Marshall Island survived a crucial vote-of-no-confidence on Nov. 12th. The vote was split at 16-16, one vote short of the minimum number required to force Heine to resign as the head of state.

The vote-of-no-confidence was triggered by the proposal to develop a national cryptocurrency called the Sovereign (SOV) and China’s interest in controlling an atoll. Heine is a staunch supporter for the plans to develop the digital currency and has referred to the Sovereign as a “historic moment” for the people of her country.

Heine told the country’s parliament, or Nitijela that the plan to force her to resign was a “referendum of our own politics,” reported Nikkei Asian Review.

Brenson Wase, the Minister of Finance said the government will proceed with its digital currency plans and is only waiting to meet the requirements of the IMF, Europe, and the U.S.

David Paul, the minister-in-assistance to the president, said in February that the country’s parliament approved the Sovereign to function as a legal tender alongside the U.S. dollar, the main currency. The government released a statement which read:

“This creates legal certainty for its use, because all jurisdictions have laws in place for dealing with legal tender, whereas private cryptocurrencies are dealt with differently in different jurisdictions.”

A date for the initial coin offering has not yet been set. The plan to develop the Sovereign came into place when Neema, an Israeli-startup convinced the country’s politicians that the project had the potential to rack in $30 million which would be split in half between the country and the startup. The government expects to raise the money by selling half of the digital currency supply to foreign investors.

According to Haaretz, an Israeli news outlet, Barak Ben-Ezer, one of the owners of Neema said that the Sovereign was just as much as a legal tender as world’s major currencies such as the USD, Euro, and the Yen.

The Sovereign has faced opposition both internally and externally. Critics accused the plan to create a national cryptocurrency as a threat to the country’s reputation. Casten Nemra, the former president of the Marshall Islands and eight other cabinet ministers who raised the vote-of-no-confidence are among the detractors of the proposed digital currency.

The government also faced opposition from the IMF, which warned the country through a report published in September that issuing the Sovereign was a threat to the country’s financial stability. The IMF warned that the risks far outweighed the benefits. The Sovereign, according to the IMF report would open the doors to financial crimes such as money laundering and terrorism finance.

However, Christine Lagarde, the chief of the IMF said that central banks should consider issuing digital currencies. She was speaking at a conference in Singapore on Nov. 14th. It remains to be seen if the IMF’s position will change with regards to Lagarde’s latest remarks.

Marshall Islands’ President and Plans for National Cryptocurrency Narrowly Survive Vote-of-no-Confidence was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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