Barbados, Jamaica Poised To Access CaribDollar Digital Payment System

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In six months, Barbados and Jamaica are set to become the first Caribbean territories to access a new pan-Caribbean digital payment settlement system, called CaribDollar (Carib$).

Carib$, a stablecoin, is the creation of partners Abed Ventures Inc., out of Barbados, and German entrepreneur, Dr. Jan Schröder.

This revelation came at the Caribbean Telecommunications Union’s (CTU) webinar, Demystifying Cryptocurrency and Digital Cash in the Caribbean held, virtually, on Friday 3 June 2022, which was moderated by Amit Uttamchandani, Technology and Business Professional from Barbados.

As explained in the webinar, along with doing so for the many new features of cryptocurrencies and digital cash, CaribCoin Inc’s Chief System Architect, Dr Jan Schröder, indicated that a stablecoin is a kind of cryptocurrency, the value of which is pegged against legal tender like the US dollar and/or other commodities such as gold or petroleum.

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He introduced Carib$ as an example of a stablecoin, stating that “it will be backed by Caribbean assets and will enable the settlement of accounts between traders or vendors doing business in different Caribbean territories (cross-border) in the legal tender of each party’s country of origin without the use intermediaries such as banks, using an online platform to transfer the electronic funds.”

Importantly, Carib$ will also provide a solution for the many unbanked small traders and Small Medium and Micro Enterprises (SMEs) to make payments both seamlessly and instantaneously as well as safely and privately.

Mr. Rodney Taylor, CTU Secretary-General,  noted, “Within an appropriate regulatory framework, digital currencies can potentially deepen the Caribbean Community’s  Single Market and Economy (CSME) thrust.”

Economist, Marla Dukharan, also speaking at the event, noted, “The region is in need of innovative solutions to meet the need of the poor and those operating in the informal economy, such as hucksters and other small traders.”

She added, “With no robust and efficient trade settlement system for such categories of business, digital currency provides a viable alternative. Digital currencies also provide additional options for the poor in the region who depend on remittances to survive, since the cost of transfer using traditional means varies between three to twenty-five percent of the value of the funds being transferred.”

Sharing on the Organisation of Eastern Caribbean States’ experience with digital currency, Sharmyn Powell, Chair, FinTech Group, Eastern Caribbean Central Bank, noted, “The Central Bank sought to address some recurring issues in its financial system with its new digital currency, DCash, namely, the high cost of current payment methods and banking services; the inadequacy of banking services in addressing the needs of the unbanked customers; and the inefficiencies in the financial management systems of  unbanked small traders, which could slow the pace of commerce.”

Adding another perspective, Vashti Maharaj, Adviser, Digital Trade Policy at Trade Oceans and Natural Resources at the Commonwealth Secretariat stated, “Cultural barriers, such as resistance to change and limitations with financial literacy or digital skills, will require emphasis to be placed on public awareness, education and capacity building in order to promote the ready adoption of the new technologies.”

Source: Caribbean Telecommunications Union. Headline photo: Internet stock image

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Editorial Staff
Editorial Staff
Our Editorial Staff at St. Lucia Times is a team publishing news and other articles to over 200,000 regular monthly readers in Saint Lucia and in over 150 other countries worldwide.

6 COMMENTS

  1. Digital currency will lead to a government that controls the people. No comply…no access to currency. It will also allow governments to track every transaction. Don’t believe….just read up on the WEF and what they want to implement.

  2. Simplicity is the way to go but with the rate of illiterate people in the Caribbean is will have its fair share of challenges. A cashless system needs to be implemented, how the local banks adopt to it is another story and the required level of processing time. Digital Currencies was well bench tested in Africa by Telecommunication Giant MTN. The difference here is that the telephone companies now become the banks and proxy for users/vendors. Also like every other thing it have its fair share of risk. Digital currencies is the way to go in my opinion because it limits the cash base system where many people have lost their lives for additionally it propels commerce to newer heights because no one have to go through those bank system who tries to monopolized it.

    • Are you sure digital currencies can’t be hacked. I suggest you research the billions of bitcoin that has been stolen. I suggest you also go look up what the CCP is doing with digital currency. And then go look up what Norway is digital currency. And then be terrified at the possibility that politicians will dictate to you how to spend you own earnings. It is not what it is cracked up to be. Don’t fall for the hype.

  3. Isn’t all this Hi-Tec $ transaction too complicated for Joe-blow and Grandma & Pa? wait till the smart boys get into it; fun ‘nd games as before.

  4. @Economist, what happened to Luna didn’t happen to Tether or USDC. Luna operates differently from Tether and USDC. Luna was backed by other crypto assets which is foolish. You cant back a stable coin with assets which are very volatile especially now when the markets are resetting. Tether and USDC are backed by actual US dollars and treasuries so they maintain their peg.

  5. Lol. Pay attention to what happened to those other “stablecoins”. Think Luna, Tether. Not telling you what to do with your mother but… don’t let anyone con you out of it.

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