Bitt Inc., a fintech company, has signed a Memorandum of Understanding (MOU) with the Centrale Bank van Curaçao en Sint Maarten (CBCS) earlier this month. They intend to explore the possibilities of issuing a central bank backed digital currency for the two nations. According to CEO of Bitt Inc. Rawdon Adams, the printing and distribution of physical cash is tough for over longer distances. Therefore, in order to facilitate faster and cheaper transactions, they are exploring digital assets as a possible solution.
“A central bank issued digital currency is of particular relevance in a monetary union where member states are separated by long distances – or the ocean – as with the ECCU, and the situation of Curaçao and Sint Maarten. This makes the Central Bank’s task of printing and distributing physical cash securely across member states that much more challenging and costly. A central bank issued digital currency, which can be used on mobile wallets, facilitates secure and frictionless financial transactions and payments, using a mobile phone / tablet, within each jurisdiction and across jurisdictions in the monetary union. This solution is particularly powerful in the case of cross-border transactions, which can take days even within a monetary union, and the cost of which is only increasing,” said Adams.
In a press release, CBCS acting president Leila Matroos-Lasten said that the project will focus on using anti-money laundering and know your customer technology for secure and efficient transactions. She also acknowledges the potential improvements that is on the way due to continuous innovations in the blockchain technology. “The CBCS herewith recognizes the transformative potential of innovation and technology and is committed to exploring solutions regarding the efficiency of cross-jurisdictional transactions and digital payments whilst ensuring compliance and security assurances obtained by these state of the art (fintech) solutions. This would be beneficial to everyone.”
Countries are slowly warming up towards the idea of digital currencies for faster and cheaper transactions. Adoption of a digital currency by a central bank of a country will pave the way for other central banks, which shied away from the blockchain technology and associated cryptocurrency, to consider digital currencies as a viable option for economical financial transactions.
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