June 16, 2024

British Virgin Islands will not launch national cryptocurrency

The authorities of the British Virgin Islands said that they do not intend to launch their own stablecoin, contrary topreviously disseminated information in the media.

At the beginning of this month, information appeared aboutthat the Virgin Islands will introduce its own national digital currency, BVI-LIFE, developed jointly with the startup LIFELabs. Earlier, local authorities reported that they really work with LIFELabs, however, as part of another project. It was assumed that all residents of the region would be able to use stablecoin, and its exchange rate would be tied to the US dollar in a ratio of 1 to 1.

“Our partner LIFElabs has a great track recordlist, which proves that it has a clear ideology. We look forward to further cooperation in terms of launching the digital currency BVI~LIFE", — LIFElabs quoted Prime Minister Andrew Fahie as saying.

However, a press release published the day before yesterday said something completely different.

“Virgin Islands authorities not involvedthe development of a national cryptocurrency, either independently or jointly with another organization. The British Virgin Islands adopted the US dollar as its currency in 1959 and do not intend to change it to any other form. ”

The authorities of the region confirm that they communicate with a number ofinterested companies, including with LIFElabs, and are still open for innovation, development and integration of modern technologies that can improve the lives of local residents. They are open to technology companies interested in doing business in the British Virgin Islands, especially those involved in the development of clean energy, smart technologies and the provision of digital services, including the field of cryptocurrencies and blockchain technology.

More than a year ago, the IMF recommended that the Marshall Islands not issue a national cryptocurrency due to the likely occurrence of various risks.

“At the moment there are no adequate measures torisk countermeasures, therefore issuing a decentralized digital currency as a second legal tender will increase macroeconomic and financial integrity risks, and in addition will increase the likelihood of losing the last correspondent connections for settlements in US dollars,” — stated in the organization.