With the adoption of digital currencies, Caribbean countries are rapidly becoming the world’s leading digital finance providers.
The Eastern Caribbean Central Bank (ECCB) launched digital currency DCash in Dominica last week, making the e-money available to seven countries that are part of the economic zone.
Caribbean countries are now the world’s first monetary unions to use central bank digital currencies.
Firstly launched in March this year, DCash improves financial inclusion, especially when cash access is a significant challenge. As per the World Bank, almost a quarter of the world’s adult population does not use banks at all.
Recent studies have also concluded that 50% of the Middle East and Africa population is economically excluded.
To make it much easier for citizens to access financial services and regulated economic opportunities, governments in small and developing countries prioritize digital currencies that can be accessed virtually anywhere using smart devices.
Users can send and receive money among friends, family or other people in seven neighbouring countries that share DCash. This project aims to achieve the efficiency of payment systems and the financial inclusion of population groups with and without banking details.
ECCB Governor Timothy Antoine said Dcash’s only goal is to boost economic growth. “Digital currency is an important tool in the larger debate about building a digital economy.”
As cryptocurrencies and stable coins grow in popularity, central banks worldwide have realized that they need to provide alternatives to keep the future of money in check.
In contrast to cryptocurrencies, which are valued for anonymity and independence from financial authorities, the CBDC is digital fiat money.
