Sovereign (SOV): the cryptocurrency that could cause a president
Many would have difficulty quoting the position of the Marshall Islands, although some may remember the name in relation to the nuclear tests that the United States had deemed appropriate to do there. However, their president may soon give the small nation more prominence if he becomes the first person to be ousted because of a cryptocurrency.
According to news from New Zealand, the current President of the Republic of the Marshall Islands, Hilda Heine, is faced with a motion of no confidence in him. This is mainly due to the administration's plan to introduce a national digital currency.
It seems that the Nitijela, the Marshallese parliament, had been rather enthusiastic about the idea of creating a national digital currency. The idea was initially presented in February and the currency was to be called Sovereign (SOV). The timeline has been set to make it functional by the end of this year, when it would start to be used alongside the official currency, the US dollar. At that time the president had proclaimed this as "another step to manifest our national freedom". However, that optimism has given way to some rather interesting developments.
According to reports, on November 5, a small group of senators introduced a vote of no confidence in the incumbent administration. This now means that a vote must be held in less than two weeks and if it reaches a simple majority (half of the votes of the parliament in favor), then the government could very well fall.
The senators have said that their concern comes from the apparent double standard that the current government seems to have. The Heine government had rejected a proposal for a special shelter for investors from the Rongelap Atoll, at the beginning of the year. At that time it was said that the offer would violate international laws and financial agreements between the Marshall Islands and other countries.
One of the senators who filed the motion of no confidence was Casten Nemra, a former president. He noted that this plan had a negative impact on the nation's reputation. This said it was the direct result of all the criticism and "advice" of the International Monetary Fund (IMF) and the US Treasury Department, as well as other agencies.
The IMF had recently warned the government against the adoption of a cryptocurrency due to the potential risk to the financial integrity of nations. He urged them to focus on implementing a solid political framework, otherwise the island nation could jeopardize its relations with foreign banks.
The announcement regarding the introduction of Sovereign has arrived at the heel of Petro, the Venezuelan national cryptocurrency. Although in his case the Petro was more so to wander around U.S. and E.U. imposed sanctions, President Nicolás Maduro has continued to launch a cryptographic bank financed by Petro. This is in the hope of providing support to the youth initiatives of the nation.
In today's world, it's hard not to be cynical. Therefore it is more difficult not to notice that the senators who are barking for the blood of Hilda Heine were those who supported the formation of the special administrative region of the Rongelap atoll. It must be said if all this political upheaval comes from a pure intent or not.