Friday, January 28

2 more Caribbean countries implement the Central Bank’s digital currency


Key facts:
  • 7 of the 8 nations that make up the Eastern Caribbean already have the DCASH digital currency.

  • DCASH aims to drive economic growth and financial inclusion in the region.

The Central Bank of the Eastern Caribbean activated its Diamond Cash (DCASH) digital currency in two more countries in the region: Montserrat and Dominica. Along with Antigua and Barbuda, Saint Kitts and Nevis, Saint Vincent and the Grenadines, and Grenada, there are now seven Eastern Caribbean nations that own this CBDC.

CBDC stands for “central bank digital currency” by its acronym in English “central bank digital currency«. DCASH is the first CBDC of the world that works in a group of countries, including now also Montserrat and Dominica.

Given that the eight nations that make up the Eastern Caribbean are at the disposal of a single Central Bank that unites them, then the digital currency that the entity created can be applicable to all of them. It only remains to add Anguilla to make it work in all the nations that make up the region, something that they estimate will be done eventually.

The Caribbean leads the adoption of CBDC

As reported by CriptoNoticias, the Eastern Caribbean Central Bank created DCASH in March 2021 as an electronic version of the dollar. Since then, it has been implementing it in different countries in the region and, together with Montserrat and Dominica, now 7 of the 8 nations that make up the bloc already have it.

The first nation in the world to incorporate a digital currency issued by its central bank was the Bahamas in October 2020. This currency, which is called sand dollar has been recognized by PwC as the most advanced CBDC in the world for its accessibility to the public, even above China’s digital yuan, which is still in the testing stage, despite being believed to be the country that has the most developed in this matter.

Timothy Antoine, the Governor of the Central Bank of the Eastern Caribbean, added Montserrat and Dominica to the use of the CBDC DCASH. Source: @SECOSEFIN / twitter.com

Between the DCASH app and sand dollar, the Caribbean and Western Atlantic area became the CBDC concentration leader. These digital currencies, being issued by central banks, are controlled by governments, unlike cryptocurrencies, such as bitcoin, which are valued for their anonymity and independence from monetary authorities. In addition, they do not have volatility, since they function as electronic fiat money hoarded by the value of the dollar.

Timothy Antoine, the Governor of the Central Bank of the Eastern Caribbean stated that the objective of DCASH is to boost economic growth. It seeks this by giving the inhabitants the possibility of making virtual money transactions, even those who do not have a bank account to improve financial inclusion.





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