Small Caribbean Nations Are Beating Global Giants In The E-Currency Race

LONDON, Dec. 16, 2021 /PRNewswire/ -- Due to their digital currency adoption, Caribbean nations are quickly emerging as global leaders in digital finance. Last week, the Eastern Caribbean Central Bank (ECCB) rolled out its DCash digital currency to the Commonwealth of Dominica, making the e-money accessible in the seven nations part of the economic bloc. The Caribbean is now the first monetary union in the world to use a central bank digital currency.

DCash, which first launched in March 2021, improves financial inclusion, especially where access to physical cash is a great challenge. According to the World Bank, almost one-fourth of the world's adult population does not use banks or banking institutions in any capacity. A recent study also found that 50% of the Middle East and Africa population is financially excluded.

To give citizens better access to financial services and regulated economic opportunities, governments of small and developing nations prioritise digital currency, which can be accessed from virtually anywhere through a smart device. Through its app, users can send and receive money from family, friends or customers in the seven neighbouring nations that share DCash. The project aims to attain payments system efficiency and financial inclusion of unbanked and underbanked populations.

This is not the first time technology has raced ahead in underdeveloped regions. In rural India, the number of mobile-phone connections far exceeds landlines. A 2011 census found that 68% of households own only a mobile phone, while only 1% own only a landline phone. Experts predict the cellphone having population is much higher in 2021.

Timothy Antoine, the ECCB's Governor, stated that the goal of DCash is to boost economic growth. "[The digital currency] is an important instrument in what is the bigger conversation about the build-out of a digital economy".

According to the Atlantic Council's Geoeconomics Center, 87 countries representing over 90% of global GDP are exploring a Central Bank Digital Currency (CBDC). However, only nine countries have fully launched their own digital currencies. One of the only nations outside the Eastern Caribbean to do so is Nigeria, which is the sixth most unbanked country in the world.

As cryptocurrencies and stable coins have become more popular, the world's central banks have realised that they need to provide an alternative and not let the future of money escape them. Unlike cryptocurrencies, which are valued for their anonymity and independence from monetary authorities, CBDCs are digital fiat. 

For a country prone to harsh weather, Dominica's government is committed to steering a digital transformation to revolutionise economic recovery and resilience. One of the main revenue generators on its climate and economic resilience mission is the Citizenship by Investment (CBI) Programme. Funds from the Programme have a tangible impact on broad aspects of life on the islands, including healthcare, education, infrastructure, and tourism.

The CBI Programme attracts substantial funds from trustworthy investors worldwide, and it has ranked best in the world for the last five issues of the CBI Index, a report published annually by the Financial Times' PWM magazine. Those who successfully pass the due diligence process not only achieve visa-free and visa-on-arrival mobility to over 75% of the world, but they also gain access to a resilient economic zone with a currency pegged to the US dollar. 

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