Centrale Bank van Curaçao in Sint Maarten and Bitt sign an agreement to explore the central bank digital currency.
The Bitt company, supported by Blockchain based in Barbados, signed a Memorandum of Understanding (MOU) with the Centrale Bank van Curazao in Sint Maarten (CBCS) to explore the possibility of issuing digital currency issued by the Central Bank.
Bitt, a company in the Medici Ventures portfolio, aims to take advantage of distributed accounting technology to efficiently and securely issue “digital dollars” that are matched with the existing fiduciary currency under regulatory supervision. After having signed a memorandum of understanding with the Eastern Caribbean Monetary Union (ECCU) earlier this year, the memorandum of understanding with the CBCS marks Bitt’s second memorandum of understanding with a formal monetary union.
The objective of the CBCS is to explore the feasibility of issuing a digital currency that will facilitate digital financial payments in both countries, as well as to maintain the external stability of the guilder.
Leila Matroos-Lasten, acting president of CBCS said:
“The Central Bank is determined to face its challenges proactively by exploring the latest available technology, for example, to reduce the level of use of cash within the monetary union, and to facilitate safer financial transactions.”
Bitt general manager Rawndon Adams explained that central bank digital currencies are particularly relevant in monetary unions where member states are separated by long distances.
“This makes the Central Bank’s task of printing and distributing physical cash safely among member states much more challenging and costly. A digital currency issued by the Central Bank, which can be used in mobile wallets, facilitates safe and frictionless transactions and financial payments, using a mobile phone / tablet, within each jurisdiction and jurisdiction in the monetary union, “Adams added.
Earlier this year, CBCS met with Curaçao Blockchain and Crypto Taskforce (CBCT), which was created to investigate the possibilities of Curacao to position itself as a facilitating jurisdiction to attract investments in digital assets, as well as blockchain technology, tokens and smart contracts for improved business behaviors.
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