Connect with us

Published

on

The government’s plan to deport asylum seekers to Rwanda is “probably dead” after it was ruled unlawful this week by the Supreme Court, one of its former justices has said.

The court confirmed its “unanimous” decision on Wednesday after 18 months of legal battles, saying those sent to the country would be at “real risk” of being returned home, whether their grounds to claim asylum were justified or not – breaching international law.

Politics live: Chancellor ‘wants to lower tax burden’

Prime Minister Rishi Sunak has pledged to push on with the scheme – which aims to deter asylum seekers travelling to the country on small boats – promising to turn the agreement with the east African nation into a legally binding treaty to allay the court’s fears, and to change the law in the UK to define Rwanda as a “safe country”.

And Chancellor Jeremy Hunt told Sky News’ Sunday Morning with Trevor Phillips it was the government’s “plan” to bring forward the new treaty and legislation quickly.

But speaking on the same programme, Lord Sumption said such measures “wouldn’t work internationally”, adding it was not a proposal to change the law “but to change the facts”.

Please use Chrome browser for a more accessible video player

Sunak presses ahead with Rwanda plan

MPs on the right of the Conservative Party have been up in arms since the ruling – including the recently sacked home secretary Suella Braverman, who has demanded the government withdraws from international treaties like the European Human Rights Convention or ignores the obligations to ensure the Rwanda scheme can go ahead.

More on Rishi Sunak

But Lord Sumption called that option “extreme”.

Defending the court’s ruling, he said: “They carefully avoided the political broader merits of the Rwanda project. They confined themselves to looking at whether Rwanda was a safe place to send people to. That was the sole issue.

“And what they decided was that it wasn’t because Rwanda’s record of expelling refugees to places which are or may be unsafe was bad, and because Rwanda just didn’t have the cultural, administrative or political substructure which was necessary to perform an agreement of that sort.”

The peer added: “You can’t in a matter of weeks or months or even years simply turn a country like that into one with an impartial civil service, an independent judiciary and the whole administrative culture.

“Ultimately, what the main problem about this scheme is that it outsources to Rwanda the decision about whether people have refugee status or not. And Rwanda just is not up to the job.”

Read more:
Analysis: PM’s suggestion after Rwanda ruling is disingenuous
Explainer: What we know about the future of the Rwanda scheme – and what we don’t

Lord Sumption said changing the UK law to insist the country is safe may work “domestically”, but even if the government chose to ignore its obligations to international treaties initially, it would “presumably intend to comply” with final orders from the European court.

Asked by Trevor Phillips if the scheme was now “dead” as a result of the Supreme Court ruling, the peer said: “I think the current Rwanda’s scheme is probably dead, but we obviously have to suspend judgements until we see what this legislation or this new treaty looks like.

“There are other possibilities. They’re not terribly attractive, but they do exist.”

Asked if he was comfortable with a change in the law to ensure the Rwanda scheme could push ahead, Mr Hunt told Trevor Phillips: “Yes, that is our democratic right as members of parliament, we made that commitment to the British people.”

On small boat crossings, the chancellor said the government was “making progress, but we haven’t yet finished the job”, adding: “We’ve been very clear we will do what it takes because a government’s job is to secure borders.

“We don’t think the system at the moment is fair to the British people, and nor is it fair to the people who are being smuggled by these evil gangs. We should decide who comes here and not those gangs.

“We will do it lawfully. And if we need to change the law, we’ll do that.”

Continue Reading

Politics

New Hampshire approves first-of-its-kind $100M Bitcoin-backed municipal bond

Published

on

By

New Hampshire approves first-of-its-kind 0M Bitcoin-backed municipal bond

New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.

Minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, show the board planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”

Minutes from the following day record that directors voted to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”

According to a Wednesday Crypto in America report, the bond is backed by Bitcoin (BTC) and would let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayers do not back the bond; instead, BFA approves and oversees a private deal, while Bitcoin — reportedly held in custody by BitGo — covers investors.

According to the report, asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the bond to utilize Bitcoin as collateral under the same rules that govern municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.

New Hampshire, United States
The New Hampshire State House in Concord. Source: Wikimedia

Related: New Hampshire, North Dakota introduce bills for Strategic Bitcoin Reserve

“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.

The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC drops below roughly 130%, a liquidation would ensure that bondholders stay whole. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund the local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.

New Hampshire dives headfirst into crypto

The news follows New Hampshire becoming the first US state to allow its government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”

Related: US won’t start Bitcoin reserve until other countries do: Mike Alfred

New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to send the measure for further review in an interim study after it had been deadlocked in the State Senate twice.

The local administration is viewed as particularly welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law in New York City, argued that it could become an alternative for crypto companies relocating to the Bahamas.

The latest moves build on a longer history of crypto engagement. Back in 2015, New Hampshire was already working on a bill that would have allowed the state government to accept tax and fee payments in Bitcoin.

The bill ultimately failed in 2016, but it shows how early the local administration began to show interest in this asset class. Additionally, as early as 2016, some advocates were already arguing that New Hampshire was among the world’s most Bitcoin-friendly communities.