Why the IMF is Trying to Stop Marshall Islands From Adopting Crypto
The International Monetary Fund (IMF)
Could IMF Stop the Plans of the Marshall Islands?
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At the time, David Paul, minister-in-assistance to the president of the Marshall Islands, said that as a nation, the Marshall Islands have the right and authority to launch a national currency regardless of the form of the currency.
“As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form,” Paul said.
IMF has publicly expressed concerns regarding the national cryptocurrency of the Marshall Islands as it fears that the currency will be manipulated by criminals, crime syndicates, and businesses running fraudulent operations.
However, as demonstrated by several studies including economist Richard Wright’s “Less Cash, Less Crime: Evidence from the Electronic Benefit Transfer Program,” physical forms of money like cash are significantly overutilized by criminals than electronic alternatives, because by nature, cash is anonymous.
“It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional >anonymity. In poor neighborhoods where street offenses are concentrated, a significant source of circulating cash stems >from public assistance or welfare payments,” the study read.
As such, the basis of the claim of the IMF that the creation of a national cryptocurrency by the Marshall Islands should be prevented due to the possibility of money laundering can be questioned, given that the effect of cash on enabling criminal activities is well documented..
Plan May be Working.
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Political pressure could force the Heine administration to lay off the plans to launch a digital asset, at least temporarily. Eight senators in the Marshall Islands have already submitted a motion of no confidence, fiercely opposing the initiative set forth by President Heine.
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