Marshall Islands Crypto Plans Attacked By Opponents Of Its “Sovereign” Token

Innovation, News, Regulation | November 9, 2018 By:

The president of the Marshall Islands, Hilde Heine, is currently facing a vote of ‘no confidence’ by a group of opposition senators who are allegedly opposed to the planned adoption of cryptocurrency as the country’s national currency.

In a statement today, she pointed blame away from the Sovereign token (SOV), a planned cryptocurrency, and towards a group that was allegedly in collusion with Chinese interests.

Eight senators have moved to pass a vote of no confidence in Heine, the first female leader of any Pacific Island. The vote is scheduled to take place on Monday.

Her opponents claim Heine bought the country’s financial reputation into disrepute by pushing ahead with the SOV as the country’s second legal tender. The  International Monetary Fund has called the plan risky.

In February of 2018, the country passed the Sovereign Currency Act, which would introduce a blockchain cryptocurrency called SOV as their national currency (currently the US Dollar). It would be the first time a sovereign nation with a UN vote adopted a cryptocurrency. By being legal tender in the Marshall Islands, SOV would be legally defined as money worldwide.