The International Monetary Fund began to put pressure on the Marshall Islands, scaring the potential risks of launching and legalizing the national cryptocurrency Sovereign.
Why central banks want to launch digital currencies | CNBC Reports
The IMF will begin to advise the country’s leadership, intimidating with apocalyptic forecasts. The document says that if a legal virtual currency is launched, American banks will refuse to cooperate with local companies and residents. According to IMF representatives, the potential benefits of legalizing SOV significantly lower than the future negative consequences associated with economic, financial, management risks, AML / CFT and loss of reputation.
Analysts at the International Monetary Fund believe that the authorities will not be able to take adequate measures to reduce the level of risks, therefore, they recommend reconsidering the decision to launch a national cryptocurrency. However, the population of the Marshall Islands is only about 53 thousand people, and Sovereign must spread using facial recognition to prevent money laundering. At the same time, it is planned to spend $ 30 million on the issue of SOV, so only the islanders will be able to feel the benefit from owning coins..
Experts believe that such drastic measures by the IMF are caused not by the very fact of the launch of the virtual currency, but by the possible consequences for the traditional banking system, which may go far beyond the borders of the Pacific state. In June 2018, the organization wrote an article that said that cryptocurrency assets could reduce the demand for money from central banks and put competitive pressure on them..
Although this is not the first time a national cryptocurrency has been launched, in the case of Venezuela, the IMF did not give such a recommendation. This may be due to a lack of evidence for El Petro, as reported by Reuters..
text: Ivan Malichenko, photo: Pixabay, IMF