The Central Bank of Curaçao and Sint Maarten (CBCS) and blockchain technology startup firm, Bitt, are entering into a partnership. The partnership aims at exploring issuance of a cryptocurrency for the island nations of Curaçao and Sint Maarten.
As per the startup’s CEO, Rawdon Adams, a cryptocurrency will be particularly pertinent to the two Dutch constituent countries. Incidentally, both the countries share the same monetary fiat currency. As a result, the risks and costs of printing and distributing physical cash by the CBCS can reduce considerably. Additionally, it will be convenient for both citizens and residents of the region.
Central Bank Digital Monies
Rawdon Adams of Bitt states, “A central bank issued digital currency, which can be put to use 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.”
As per Leila Matroos-Lasten, the acting president of CBCS, who is partnering with the startup, “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.”
Blockchain Original Proposal with ECCB
This is not the first time that Bitt has aligned with a central bank. In March, the startup signed an MOU with the ECCB (Eastern Caribbean Central Bank). The objective of the deal was to develop, organize, and test technology to improve the ECCB’s risk profile.
The deal took place in the same month that Medici Ventures increased its stake in the startup to 8.6%.
As a result, a digital currency will be more compliant with KYC (Know Your Customer). The earlier MOU was also to explore the possibilities of the growth of a cryptocurrency for the ECCU.
At the time, the ECCB’s governor, Timothy Antoine, said “[As] the ECCB promotes the safety and soundness of the financial system in the ECCU, it also has a responsibility to encourage and support innovation consistent with the Bank’s mandate to facilitate the balanced growth and development of member countries. To that end, blockchain technology merits our attention and consideration at this time.”
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