Why Did the Marshall Islands Issue Its Sovereign Debt as USDM1? - Disruption Banking
Why Did the Marshall Islands Issue Its Sovereign Debt as USDM1? - Disruption Banking
Source: Disruption Banking
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DW NOTE
The Marshall Islands chose USDM — a stablecoin issued by Mountain Protocol — to denominate sovereign debt because Circle and Tether wouldn't touch it. Neither wanted the compliance burden of holding government paper on-balance-sheet or the political exposure of being a central bank surrogate. USDM's structure lets the Marshall Islands borrow in dollars without asking permission from a Silicon Valley boardroom. That's not financial innovation — it's what happens when the incumbent duopoly decides you're not worth the paperwork.