On Tuesday, both the Commonwealth of Dominica and the mountainous Caribbean island Montserrat joined in using the CBDC that was rolled out by the Eastern Caribbean Central Bank (ECCB). This move ultimately means that among the 8 Eastern Caribbean nations who initially set out to implement the ECCB’s digital payment system, Anguilla is the only remaining one to tap in.
Meanwhile, it was in March 2021, that the ECCB partnered with DCash to launch its Central Bank Digital Currency (CBDC) which is dubbed the “EC Dollar”. At that time, the CBDC was rolled out to Grenada, Saint Lucia, Antigua and Barbuda, and Saint Christopher (St Kitts) and Nevis. Three months later, however, the EC Dollar was expanded to Saint Vincent and the Grenadines.
How The Eastern Caribbean Digital Currency Works
DCash is a wallet app that was specifically designed for holders of the EC Dollar for storage and other transactions. With the app, users can make purchases and peer-to-peer transfers of the CBDC, all within the Eastern Caribbean Currency Union (ECCU).
Speaking about how the digital payment system works, the ECCB Governor Timothy N.J. Antoine said on Tuesday, that the EC Dollar offers an alternative option to traditional payment systems which are now relatively too slow. He also added that for all intents and purposes, the digital EC dollar should work for everyone, except for those with ulterior motives.
Furthermore, Antoine explains that all efforts are geared towards boosting the economy of the region, albeit also for the ultimate purpose of promoting the longstanding goal of shared prosperity for the people of the Currency Union.
More Countries Adopting CBDCs
According to data by atlanticcouncil.org, there are only 9 countries in the world currently using a CBDC. Interestingly, 7 of them are from the ECCU. The other two are The Bahamas and Nigeria. Nigeria launched its CBDC for the second time in October. This was after a failed initial launch.
Presently though, about 21 other countries are already either in the pilot or development phase. 40 others including the USA, are already exploring the idea, researching the technology.
Also according to the site, only 9 countries of the world have been so far unimpressed with the technology, showing no intentions to even weigh their options with a CBDC in any way.