Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

How Eastern Caribbean became the world's first digital currency union

How Eastern Caribbean became the world's first digital currency union

DCash is believed to be the world's first digital currency launched by a currency union, making it easier for those without bank accounts to make quick transactions.

The Eastern Caribbean has created its own form of digital currency meant to help speed transactions and serve people without bank accounts.

The Eastern Caribbean Central Bank said its "DCash" is the first such blockchain-based currency introduced by any of the world’s currency unions, though some individual nations have similar existing systems.

It became available Wednesday, March 31, in a year-long pilot programme in four island nations: St. Lucia, Grenada, Antigua and Barbuda, and St. Kitts and Nevis.

DCash was created by Barbados-based fintech company Bitt in partnership with the central bank. Unlike cryptocurrencies, it is issued by an official central bank and has a fixed value, tied to the existing Eastern Caribbean dollar used across much of the region.

"(It) is a milestone in the history of monetary instruments," said Bitt CEO Brian Popelka during a press conference broadcast online.

The system allows users even without bank accounts - but with a smartphone - to use a downloaded app and make payments via a QR code. Those without bank accounts would go to a previously approved agent or nonbanking financial institution who would verify a person’s information and then approve a DCash wallet.

That person would then go to a supermarket or other store and give the cashier physical cash which would then be deposited as digital currency in their wallet, Bitt spokesman Chris Burnett told The Associated Press.

In addition, there are limits on the amount of money people can send via DCash, there are no plans for now of integrating credit cards and interest does not apply to the digital currency.

Fears of financing terrorism and fraud


While many in the Eastern Caribbean cheered the historic move, some experts worry that digital currency issued by smaller countries could end up being used as a conduit for illicit activities, including terrorism financing and money laundering, said Eswar Prasad, a trade policy professor at Cornell University.

"That skepticism is waning as more central banks get into the act, and as central banks around the world face the inevitability of the declining use of physical cash," Prasad said.

He noted that the Bahamas last year became the first country to roll out its digital currency nationwide, and that the Marshall Islands is considering its own cryptocurrency. For smaller countries, "there is more at stake" in part because many people remain unbanked, he said.

"That’s why I think small countries are being more aggressive about this, simply because they need to," Prasad added.

Officials said that the digital currency will be available in Anguilla, Dominica, Montserrat and St. Vincent and the Grenadines - which form part of the eight island economies under the Eastern Caribbean Central Bank - by September at the latest.

The project aims to see a 50 per cent reduction in the use of physical cash by 2025, said Sharmyn Powell, chairperson of the bank’s fintech working group.

"It’s safer, faster and cheaper," Powell said.

Central Bank Governor Timothy NJ Antoine said he envisions farmers, fishermen, small business owners, single mothers and people without bank accounts, among others, using the digital currency.

"Payments are still too slow and too expensive," Antoine said of the current system. "We heard you, and we have delivered".

Antoine said it is harder to steal digital cash and said it's a safe way to make payments while avoiding contact during the pandemic.
Caribbean ahead of other countries

One Eastern Caribbean dollar is currently equivalent to €0.31. All Eastern Caribbean notes feature Britain's Queen Elizabeth II, who is the current head of the Commonwealth.

The project comes more than two months after the European Central Bank, the Bank of Japan, the Bank of Canada, the Bank of England, the Swedish Riksbank, and the Swiss National Bank created a group to study whether they should issue digital currencies.

The Swedish central bank already has commissioned a pilot program. Meanwhile, China rolled out a digital currency in four cities in April 2020 as part of a pilot program that has since expanded to more than two dozen cities.

However, Lee Rainers, a fintech law and policy professor at Duke University, said it remains to be seen whether central bank digital currency is the future.

"I approach it with a sense of skepticism because this technology has been around for over 10 years now but has not taken off as a broad medium of exchange," he said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×