The central bank of Caribbean islands Curaçao and Sint Maarten is exploring the possibility of a digital currency.

Centrale Bank van Curaçao en Sint Maarten (CBCS) has signed a Memorandum of Understanding (MoU) with Barbados-based fintech company, Bitt.

The MoU is to explore the feasibility of the CBCS issuing a digital Curaçao and Sint Maarten guilder. A digital currency will be able to support digital payments within the monetary union of Curaçao and Sint Maarten.

Bitt’s digital currency solution

Bitt is a fintech that utilises blockchain and distributed ledger technology (DLT). Through this technology, it facilitates secure peer-to-peer transactions with frictionless mobile money. The company aims to provide a secure infrastructure to develop a digital financial environment across the Caribbean.

Rawdon Adams, CEO of Bitt, stated: “The MOU clears the way for collaboration and information sharing regarding a feasibility study. This is designed to determine the viability and functionality of using a central bank issued digital guilder within the financial ecosystems of each member, and across both members, of the monetary union.”

The MoU comes soon after Bitt struck a similar deal with the Eastern Caribbean Central Bank.

Leila Matroos-Lasten, acting president of the CBCS, commented: “The central bank is determined to address its challenges proactively by exploring the latest technology available. For example, to reduce the level of cash usage within the monetary union, and to facilitate more secure, more AML and KYC compliant, and more efficient financial transactions within and between Curaçao and Sint Maarten.

“The CBCS herewith recognises the transformative potential of innovation and technology and is committed to exploring solutions regarding the efficiency of cross-jurisdictional transactions and digital payments. While doing so, CBCS will ensure compliance and security assurances obtained by these state of the art (fintech) solutions. This would be beneficial to everyone.”

The two parties signed a MoU on August 3rd, 2018.

Moreover, this solidifies the basic framework for this collaborative effort.