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[March 2023] The Centrale Bank van Curaçao en Sint Maarten is among the central banks analyzing the effects of a digital Caribbean guilder central bank digital currency (CBDC). One of the reasons to consider a digital Caribbean guilder is the potential positive impact on financial inclusion. However, the advantages of a digital Caribbean Guilder are not yet convincing given the current state of technology, the experience in other Caribbean countries, and the level of digital literacy of those concerned. Priority has been given to provide everyone access to regular banking services and to the legislative initiative to support this in Curaçao and Sint Maarten.

Meanwhile, the Eastern Caribbean Central Bank's DCash, the CBDC used by seven Caribbean nations, has been down since January 14 and it's unclear when it will be back online. In an email to Bloomberg, Karina Johnson, a DCash project manager at the bank, said officials were working "around the clock" with their service provider Bitt "to re-establish full transaction capabilities."

The Kansas City Fed published an article by Franklin Noll that analyzes the underwhelming adoption of retail CBDC in the three Caribbean jurisdictions where they have been launched (Bahamas and Jamaica) or are being piloted (Eastern Caribbean Currency Union). It concludes that, to spur adoption it needs to add value relative to cash, be widely accepted, readily accessed, and easily used. Also, the new platform may need to be integrated into existing payments systems; into ways that consumers, merchants, and banks do business; and, ultimately, into people's lives.

The Eastern Caribbean Central Bank (ECCB) DCash officially went live in The Commonwealth of Dominica and Montserrat, expanding the central bank digital currency (CBDC) pilot to seven of the eight member countries.

"Bitcoin Cash (BCH) could be legal tender in Saint Kitts and Nevis by next March... [Prime Minister] Terrance Drew, who is also finance minister of the Caribbean country, said the decision would follow a process of due diligence and consultation with experts and the Eastern Caribbean Central Bank... Bitcoin Cash is a fork of Bitcoin, which split in 2017 with the aim of making transactions faster and easier, and is, Terrance said, already in practice being accepted by some local businesses." https://www.sknis.gov.kn/2022/11/12/skn-due-diligence-first-cryptocurrency-second/

The Eastern Caribbean Central Bank (ECCB) DCash has been offline since January 14, and it could take several more days to fully restore service, bank officials told Bloomberg News. The "interruption" didn't compromise any data but it stopped all transactions. The problem was related to an expiring certificate on the version of the Hyperledger Fabric that hosts the DCash ledger.

The Eastern Caribbean Central Bank is inviting members of the public to register for access to its central bank digital currency (CBDC), in preparation for the second phase of its pilot. Following the first phase of the pilot, the central bank now plans to roll out the CBDC to Antigua and Barbuda, Grenada, Saint Lucia and St Kitts and Nevis. The ECCB is yet to announce the exact date of the launch.

This is a nice summary of the Eastern Caribbean Central Bank (DCash) and Central Bank of the Bahamas (Sand Dollar) central bank digital currency (CBDC) pilots.

"2020 saw the number of registered and active mobile money accounts grow to new levels globally, but Latin America and the Caribbean (LAC) had by far the fastest growth of any region. LAC now counts 39 million registered accounts, representing a 38 per cent year-on-year growth, while active accounts reached 16 million, growing by an outstanding 67 per cent - the highest rate since 2013. LAC also continues to be the region with the highest activity rate, with over 40 per cent of all accounts being active on a monthly basis."

he Bank for International Settlements (BIS) published a paper that examines the views toward CBDCs Latin American and Caribbean (LAC) region central banks , drawing on their responses to a survey conducted by the BIS in late 2020 and early 2021. It also examines whether the engagement of LAC central banks with CBDCs can be explained by the structural characteristics of their economies. Thirdly, it reviews the long list of potential benefits, costs and risks of CBDCs, focusing on their relevance to the LAC economies. Finally, the paper reviews the design choices that central banks face and the actual choices made by a number of central banks in the region.

"This IMF paper revisits the competitive environment of the banking system in Latin America and the Caribbean and investigates the early impact of fintech development in the region thus far. Against the backdrop of high net interest margins (NIMs) and limited financial depth in the region, panel regressions broadly confirm the results of existing literature on the association of NIMs with the changes in financial sector structure, including market concentration, administrative costs, and foreign banks, although differences between domestic and foreign banks narrowed after the 2008-09 global financial crisis. Difference-in-difference regressions and case studies on Brazil and Mexico suggest that fintech is associated with reductions in NIMs and defensive responses by incumbent banks, both of which benefit consumers. The case studies also shed light on regulatory approaches and prudential considerations in fostering financial innovation and banking sector competition."

The Eastern Caribbean Securities Exchange (ESCE) plans to partner with Canadian-based digital asset marketplace provider Blockstation to pilot security token offerings (STOs), according to a Letter-of-Intent published on March 10.

The Eastern Caribbean Central Bank (ECCB) will soon launch its DCash digital version of the EC Dollar. The central bank digital currency (CBDC) will be rolled out initially in Antigua and Barbuda, Grenada, Saint Kitts and Nevis, and Saint Lucia. With it, for example, folks who live in Grenada will be able to send DCash to family and friends in Saint Kitts and Nevis. Those who shop in Saint Lucia but live in Antigua or Barbuda will be able to send DCash from Antigua Barbuda to pay merchants for goods and services in Saint Lucia.

On January 14, the Eastern Caribbean Central Bank (ECCB) DCash central bank digital currency (CBDC) platform experienced an interruption in service that has affected all users. This break in service has been caused by a technical issue and the subsequent necessity for additional upgrades. Since the breakdown, no DCash transactions are being processed.

The Eastern Caribbean Central Bank (ECCB) DCash officially went live in The Commonwealth of Dominica and Montserrat, expanding the central bank digital currency (CBDC) pilot to six countries.

Eastern Caribbean Central Bank (ECCB) Governor Timothy Antoine reportedly says he is pleased with the performance of its DCash central bank digital currency (CBDC) pilot aimed at improving financial inclusion and modernizing payment systems. He said that partnerships with licensed financial institutions and regional businesses and organizations have enabled DCash to expand its reach, enhance platform features, and ensure regional impact.

"Most central banks in LAC are analyzing the potential introduction of CBDCs, with some island nations having already issued their own. According to our survey with government officials in the region, half of the respondents were considering both retail (i.e., designed for the general public) and wholesale (i.e., intended for use by financial institutions) CBDC options."

The Eastern Caribbean Central Bank (ECCB) DCash central bank digital currency (CBDC) pilot expanded to Anguilla, and now the digital version of the EC currency is legal tender in all eight ECCB member countries. Liberty Co-operative Credit Union (LCCU) is the first financial institution in Anguilla to join the Pilot and will begin processing DCash applications for both merchant and consumer wallets for their customers. Citizens and residents who are not customers of LCCU may obtain a DCash value-based wallet by signing up through the app.

The Banque de la République d'Haïti has requested technical assistance from the IMF to help address the risks associated with CBDC deployment. Support has been received from specialized foreign firms and collaboration has been initiated with countries that have already launched a CBDC, particularly in the Caribbean.

The Eastern Caribbean Central Bank (ECCB) has revealed that an expired certificate caused its pilot central bank digital currency (CBDC), DCash, to go offline from January 14. Karina Johnson, the ECCB project manager for the DCash pilot, said that "the version of Hyperledger Fabric (HLF)", the network that hosts DCash's distributed ledger, "had a certificate expire". To install an up-to-date certificate, the currency's operators are undertaking "a version change of HLF and associated systems.