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You can download the full report from the IMF here: https://www.imf.org/en/Publications/CR/Issues/2018/09/10/Republic-of-the-Marshall-Islands-2018-Article-IV-Co
by EE84M3i 8y ago
You can download the full report from the IMF here: https://www.imf.org/en/Publications/CR/Issues/2018/09/10/Republic-of-the-Marshall-Islands-2018-Article-IV-Consultation-Press-Release-Staff-Report-and-46216 https://www.imf.org/en/Publications/CR/Issues/2018/09/10/Rep... This is an ARTICLE IV CONSULTATION which is a type of report the IMF publishes about each country each year.
The Marshall Islands are obviously a relatively small market, and the IMF devotes a chunk of their report to the new currency and the risk of losing their correspondent banking relationship (CBR) in the section "PROTECTING FINANICAL STABILITY" which is 3-4 pages (starting on page 6)
I recommend you read it yourself. The IMF's primary concerns seem to be AML issues and the prior existing risk to their CBR, which amount to a large amount of risk for such a small country to take on. Note the Marshall Islands are part of the Compact of Free Association with the US and are highly dependent on the US for almost everything, so having a falling out with the US would be really bad for them.
Maybe I haven't drank enough kool-aid but I'm unconvinced this is the IMF making threats (it's not like the IMF really has any power anyway) and more them advising the Marshall Islands that they're likely in dicey territory with the US regulators and that that is a substantial risk to their economy.
- smidgeoncoup 8y agoYou've CHUGGED the kool-aid if you think the IMF doesn't really have any power. Who else bends the will of 3rd world countries better?!?
- tim333 8y agoThere is also a page from the would be Sov operators https://www.sov.global/ https://www.sov.global/ saying they have solutions for AML: >The Yokwe Protocol brings modern blockchain technology inline with international banking and regulatory standards, enabling users to answer the two most common questions asked by banks: “who are you” and “what is the source of your funds?” >To send SOV from a wallet, a user must first have an identity token provided by a pre-selected, reputable Know-Your-Customer (KYC) company. This way money always flows between identified accounts.
- anonymous5133 8y agoThe IMF report is overly biased because it does not take into account the benefits that the Marshall islands could obtain from being an economy with a crypto official currency. For example, having a crypto official currency would eliminate currency controls and could encourage new economic activity on the island. The Marshall islands is desperate for solutions to grow their economy so they have very little to actually lose if they do adopt it. The IMF report does not reflect this.
- eli 8y ago"biased" doesn't mean the same thing as "I disagree with the conclusion and methodology"
- gumby 8y agoThe IMF report... does not take into account the benefits that the Marshall islands could obtain... For example, having a crypto official currency would eliminate currency controls and could encourage new economic activity on the island. Right now the official currency is the US dollar so there are no currency controls. Any what activity would be encouraged by not using the dollar, especially in an area with so little population?
- weego 8y agoSo you're saying the IMF doesn't have enough unproven and untested overly-optimistic speculation to balance out the harsh realities.
- HumanB 8y agowhen you dive into the facts, you then realized the Marshallese aren't so naive in their acceptance of sov coin. The infrastructure as well as for the smart contracts are all there to make the new system immutable, decentralized and a tool for economic independents. the Yokwe protocol is there to try and make AML a thing of the past and move the markets forward, by using a smart KYC protocol you eliminate most obstacles in their way.