IMF Clashes with Marshall Islands’ Issuance of State-Run Cryptocurrency
The International Monetary Fund (IMF), an organization working to secure financial stability globally, has repeatedly expressed its antagonism to the issuance and circulation of the Marshall Islands’ state-run digital money currency. The Republic of Marshall Islands (RMI) plans to release a national virtual currency which combines cryptocurrency and fiat currency dubbed Marshallese Sovereign (SOV).
IMF Mission Director Manrique Saenz, who visited the RMI, revealed that in the meantime, digital currency technologies like the central bank digital currency (CBDC) and stablecoin have improved considerably. Since the RMI doesn’t have a central bank, the SOV isn’t a CBDC or a stablecoin such as Facebook’s Libra, rather the virtual currency depends on the computational power of the distributed ledger technology (DLT) as its financial regulating element influenced by RMI nationals and other venture capitalists, and the token is likely to be issued in series of auctions.
