IMF Recommends Giving Up On State Cryptocurrency Integration
September 12, 2018
The IMF advised the Republic of the Marshall Islands to abandon the idea of integrating its own digital currency as legitimate payment means like Venezuela did with the Petro cryptocurrency. For today the republic has got the only state currency, i.e. US dollar.
The Republic of the Marshall Islands located in Micronesia planned to develop a digital currency to help local economic system by cutting risks of detachment from the global economic system.
The IMF discussed this project at the meeting with the republic representatives and as a result recommended to cease working on the implementation of the initiative as the country's economics is now dependent on some states that support it. In addition, there have been huge problems in the region caused by natural calamities.
The republic’s only private bank organization may lose relations with the US bank for stricter regulation standards in America.
Moreover, the IMF is convinced, implementing the idea of state-backed digital currency in the republic will produce negative effects on the country especially if anti-money laundering measures turn insufficiently effective.