The British Virgin Islands denies stablecoin launch

Although previously continuously announced will release digital assets. However, it seems that the government of the British Virgin Islands is too fed up with the fierce competition in the stablecoin issuance market. Therefore, they have officially announced they will not launch its stablecoin.

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The Government of the British Virgin Islands (BVI) denied the information about the upcoming launch of a state-backed stablecoin

The British Virgin Islands denied rumors of stablecoin issuance

In early December, around December 3, 2019, the government of the British Virgin Islands (BVI) announced it would combine with LIFELabs start-up to issue its stablecoin called BVI-LIFE. Not only used at BVI, but this stablecoin is also planned to be developed outside the British Overseas Territory.

However, for some reason, the BVI government suddenly denied issuing national stablecoins. Moreover, this state-backed stablecoin is believed to be able to replace the USD. However, the BVI government has no intention of replacing the USD as the official currency. Not only that, it looks like the token will not be created anymore.

To further clarify this “misunderstanding,” BVI emphasized that none of their partners plan to issue digital currencies under their names. Therefore, there is no plan to replace the USD with some digital currencies.

It seems that it is because of many proposals that express interest from many international companies that want to turn BVI into their base of operations. Or simply trading and providing their services within the territory, BVI has denied this news.

BVI still supports innovation and trade promotion

Despite denying news is issuing stablecoin. However, the BVI government even admits they have approached this idea. Moreover, many international companies have made business proposals or provided their services within the BVI territory. In particular, LIFELabs is one of the companies with this plan.

Of course, the government emphasizes that they are still open to innovation and emerging technologies. They are not against any technology that could lead to better living conditions for their citizens, as well as companies that have launched their businesses in the country. That includes companies related to smart technology, green energy, and even digital services, including cryptocurrencies and Blockchain.

But, they emphasized that their entire idea of ​​developing a national stablecoin with LIFELabs with plans to replace USD is nothing more than a misunderstanding.

Many are concerned that this announcement could trigger a significant sell-off in the cryptocurrency market, although this is unlikely to happen. However, the refusal of initial notice can still help the bearish market gain greater strength in the cryptocurrency space.

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