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A group of Marshal Island’s senators have introduced a vote of no confidence in president Hilda Heine over her administration’s plans to unveil a government backed cryptocurrency.

New token- SOV

President Heine’s administration has developed a digital a national crypto dubbed sovereign (SOV) that will be used alongside the US dollar, which is the nation’s official legal tender up until now.

The new crypto will be unveiled through ICOs but only to a tune of $24 million worth of tokens. The limit is precautionary to avoid flooding the market with digital assets that would in turn cause inflation.

Parliament’s approval

The plans to roll out the country’s second offical legal tender was also backed by the republic’s parliament. Speaking about the government plan’s David Paul, The minister-in-assistance to the president said that “As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form.”

The move to adopt digital assets as the nation’s official legal tender has elicited a lot of crytisism not only from the outspoken senators but also the nation’s former president Casten Nemra. Nemra is concerned that the move would puncture the nation’s reputation severely considering that they are already facing santions by the EU and the US.

Warnings

The US Treasury Department has already adviced the nation against moving forward with its plan until it has established adequate regulations to govern the crypto. This is an obvious concern as the cryptocurrency industry is one of the poorly regulated financial sector with fraudsters and hackers ripping off investors every now and then.

Another notable body that sees Marshal Island’s plans as insane is the International Monetary Fund (IMF). The IMF has advised the Island’s authorities to seriously reconsider its plans warning that it may come with undesirable economic implications.

The republic with a tiny poulation of about 53,000 is going the Venezuela-way to save its economy from nosediving further. It is however, important to point out that Venezuela’s efforts to launch Petro as the nations official legal tender has not yielded any significant results so far.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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