The Marshall Islands Is Issuing Its Own Cryptocurrency

The Minister in Assistance to the President and Environment, David Paul lays out the plans for a sovereign currency using blockchain technology. This is a brave initiative, gets high marks for being cool and techy, but it is poorly conceived and has no chance to survive. The islands are too small, the dollar too strong, and the monetary policy too naive. They want their money supply to increase 4 percent per year, regardless of what happens. This will be too much in many years, causing unnecessary inflation, possibly not enough in an emergency, and has no chance to cool off an overshoot. Still, it's worth understanding ...


Read about the Marshall Islands Digital Currency Project