Marshall Islands Ignores IMF Warnings and Continue Virtual Currency Project

When the Pacific island nation of Marshall Islands (RMI) announced the establishment of a non-profit organization called 'SOV' Development Fund, it expressed its determination to continue the virtual currency project despite warnings from the IMF.

The purpose of the fund is to support the government in establishing, maintaining and introducing the "SOV," a legal digital currency of the Marshall Islands. Once Sovereign is enacted, it is maintained as a "legal digital currency" based on blockchain, but specific roadmaps are unknown at the moment.

Currently, the U.S. dollar is used as a currency in the Marshall Islands and it relies on foreign aid for dollar payments from the U.S. The Republic of Marshall Islands announced early 2018, that it would establish a national virtual currency called, "Sovereign."

Meanwhile, in September 2018, the International Monetary Fund (IMF) pointed out that the risk of employing virtual currency in a second legal currency is too high, citing specific reasons to check the movement of the Marshall Islands republic, and claimed that it believes that the potential benefits from increased revenue are much smaller than the potential risks that could arise from the issuance of AML/CFT (money laundering, terrorist funding measures) and virtual currency.

However, the Marshall Islands republic responds that while it acknowledges the risks posed by the issuance of "SOV," it is confident that the advanced technology will bring sufficient risk relief.

Reporter James Lee (news@dailycoinews.com)의 기사 더 보기

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