The Eastern Caribbean Central Bank (ECCB) intends to conduct an experiment on the creation of a blockchain-based digital currency of the central bank (CBDC), which may become legal tender in the region as early as 2020.
The contract for the pilot release of DXCD – the digital version of the East Caribbean Dollar (XCD) – the Central Bank signed Bitt from Barbados with a Fintech startup. Pinaka Consulting will provide technical support for this project.
According to the Bitt statement :
“The pilot project will include a securely minted and released digital version of the East Caribbean dollar.”
DXCD will be distributed and used by licensed financial institutions and non-bank financial institutions in the East Caribbean Monetary Union (ECCU).
The Stablecoin DXCD will be intended for use in financial transactions between consumers and merchants, as well as in peer-to-peer transactions, such as sending money to friends or family members within the ECCU. Funds can be sent using smart devices such as smartphones.
“This is not an academic exercise. DXCD will not only become the world's first digital currency of legal tender to be released by the central bank on the blockchain , but this pilot project will also be deployed in real time based on CBDC for the purpose of gradual public introduction , ”said ECCB Governor Timothy N. Dj . Antoine (Timothy NJ Antoine).
The project is part of the ECCB Strategic Plan for 2017–2021, the goal of which is to reduce the use of cash in the union by 50%, as well as ensure greater stability of the financial sector and stimulate the development of ECCU member countries, the ECCB head added.
Implementation of the pilot project will begin this month, the first stage – the development and testing of DXCD – is designed for 12 months. In the second phase, within six months, the digital currency will be introduced in several pilot countries.
The ECCU is formed by member countries of the Organization of Eastern Caribbean States (OECS), which includes Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, as well as Montserrat and Anguilla.
Recall that for the first time about the possibility of releasing DXCD became known last month after the signing of the relevant memorandum of understanding between the government of Montserrat and start-up Bitt.
Publication date 08/03/2019
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