The International Monetary Fund said in a report it is not crazy about the Republic of the Marshall Islands offering a national cryptocurrency.
The IMF said the plan for the statecoin would “increase macroeconomic and financial integrity risks, and elevate the risk of losing the last U.S. dollar correspondent banking relationship” or CBR.
The Marshall Islands, an archipelago in the Pacific Ocean, uses the dollar as its legal tender and is heavily dependent on receiving and spending American grants to maintain its local economy.
In its 2018 Marshall Islands report, the IMF said the country faces substantial financial risks if it replaces the dollar with its own cryptocurrency. The IMF also fears the digital currency will be used for money laundering and terrorist financing.