The ECCB (Eastern Caribbean Central Bank) is going to lead a pilot for a blockchain-based central bank digital currency (CBDC). This is in anticipation of its arranged full release as a legal tender, potentially in 2020. Eastern Caribbean Central Bank Takes Step Towards Cryptocurrency Rollout.
Towards the end of last month, the ECCB signed an arrangement with fintech company, Bitt. Bitt is based in Barbados and will help direct the pilot, along with specialized technical help coming from Pinaka Consulting.
CBDC pilot will utilize a “securely minted and issued” digital form of the Eastern Caribbean dollar (XCD). As per an announcement Bitt, this coin will be distributed for use by financial establishments across the Eastern Caribbean Currency Union (ECCU).
The stablecoin, DXCD, is proposed for use in monetary exchanges among customers and traders, and peer-to-peer exchanges. For example, sending cash to associates or family inside the ECCU. Also, gadgets, such as cell phones will be able to be used to transfer funds.
Timothy N. J. Antoine, the governor of the ECCB, remains adamant that the pilot isn’t an “academic exercise”.
However, he clarified that the computerized EC Dollar will be the world’s first digital legal tender currency to be issued by a national bank. This pilot is additionally alive CBDC deployment, with the intent to eventually lead a phased openly public rollout.
Antoine said the pilot comes as a component of the ECCB’s financial strategy for 2017-2021. The initiative expects to diminish the utilization of money in the union by 50 percent. It will bring greater strength and stability to the financial sector. Also, it will increase the development of ECCU member nations.
He further included that it would be a distinct advantage for the manner in which they work together.
The pilot is releasing this month. After approximately a year of improvement and testing, will be trailed by rollout and execution in pilot nations for around half a year. In order to raise awareness, and public participation with DXCD across the union, the ECCB will also be releasing educational programs and activities.
“The goal of the undertaking is to expand the growth of the economy, and better the quality of life of regular people.” Rawdon Adam quoted.