The Eastern Caribbean Central Bank (ECCB) launched a pilot project to develop a blockchain-based central bank digital currency (CBDC) within the Eastern Caribbean Currency Union (ECCU).
ECCB said it signed a contract with the Barbados-based fintech company, Bitt Inc., for the test, which will be technically supported by Pinaka Consulting Ltd.
The Bitt group is a blockchain-based services company operating in Barbados and the wider Caribbean.
The new CBDC will be a digital version of the EC dollar (DXCD), distributed and used by Licensed Financial Institutions and Non-Bank Financial Institutions in the ECCU jurisdiction.
"The DXCD will be used for financial transactions between consumers and merchants, including peer-to-peer transactions, all using smartphones," ECCB said in a press release.
ECCB Governor Timothy N. J. Antoine said the pilot is part of the ECCB's Strategic Plan to help reduce cash usage within the Union by 50 per cent, promote greater financial sector stability, and expedite the growth and development of ECCU member countries.
ECCB plans to execute the DXCD pilot in two phases in the next 12 months: development and testing. The second stage is pilot implementation in select countries for about six months.
The Eastern Caribbean Central Bank (ECCB) was established in October 1983. The ECCB is the Monetary Authority for: Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines.
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