Advanced plans to create a cryptocurrency serving the people of the Marshall Islands has survived a crucial vote forced by island leaders hell bent on derailing the project.
President Hilda Heine – President of the Republic of the Marshall Islands – faced a vote of no confidence from the island chain’s senators who claim the idea of the ‘Sovereign’ (SOV) involved too many financial risks.
The independent Micronesian nation has strong historical and economic ties with the US, and uses the US dollar as currency. Several political leaders of the islands fear the SOV could erode those relations and, indeed, use of the dollar.
They moved to topple Heine with a vote of no confidence earlier this week, but the 67-year-old survived by a single vote. She faced accusations of damaging the reputation of the Marshall Islands by backing the proposed implementation of the SOV.
In the wake of the minor crisis, Finance Minister Brenson Wase has now been instructed to press ahead with advancing plans for the SOV.
He has stated that the Marshallese government will look to raise funds for the project by offering up 50% of the SOV’s opening allocation to foreign investment. The other half will be held in a trust fund or possibly distributed to more than 50,000 citizens who live on the Marshall Islands.
Ministers have already approved the ICO as legal tender, but a date for its launch has yet to be announced.
“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,” explained David Paul, minister-in-assistance to the president.