Dr. Hilda Cathy Heine, President of the Marshall Islands, is taking some heat from her plan to convert the Marshall Island’s currency from the US dollar to their own cryptocurrency. The Blockchain based “SOV” currency was approved and signed into law back in February.
The Marshall Islands gained their independence from the US back in 1986. The Republic is made up of 1,156 individual islands with a population of under 100,000. The US provides material financial aid which helps to prop up the tiny country.
“Issuing the world’s first legal digital tender, the SOV, will keep the Republic of the Marshall Islands and its residents integrated into the digital economy, allow residents to transfer and receive funds safely and instantaneously without the need for correspondent banks, who have long threatened to stop servicing small Pacific island countries like the RMI, and help the country make up for a sharp and imminent decline in external aid.”
Earlier this month, it was reported that opposition politicians were pushing to oust President Heine – ostensibly due to the move to issue the sovereign crypto.
Today, Heine is pointing a finger at China saying they are behind the maneuver to undermine the SOV and stage her ouster. The allegations are that China wants to secure a “remote Marshall Islands atoll and turn it into a country within [their own] country” challenging the Republic’s sovereignty, according to a report in the Guardian.
“We are a small country and it is easy for foreign elements to influence individual people, and so I think that the more education and information that we share with the public the better so we can see initiatives for what they are. If you were to take a poll today, my guess is that over 60% of the Marshallese [parliament] would come out against the vote of no confidence, because they know it is baseless.”
While it is not clear as to whether the accusations of collusion with China are baseless or not, the vote on Heine’s removal is scheduled to take place next week – so we will know soon enough if the SOV may replace the dollar.