The ECCB to test a Blockchain-Based Central Bank Digital Currency

By Luke Flowers – Cryptocurrency Enthusiast

The Eastern Caribbean Central Bank (ECCB) has reportedly launched a pilot project to develop a Central Bank Digital Currency (CBDC). The digital currency is to be used within the Eastern Caribbean Currency Union (ECCU) to transact more freely.

The ECCB has signed a contract with the blockchain-based service company Bitt group that operates in the surrounding area to conduct the test. This CBDC will be pegged to the value of the EC Dollar (DXCD) as a digital version to be distributed and used within the ECCU jurisdiction. Those living in the area will be able to buy crypto with the CBDC more efficiency and use the coin for Peer-to-Peer (P2P) transactions using a smartphone. This will enable crypto buying using the CBDC directly from a mobile device between consumer and merchant.

The pilot has been stated as a strategic plan to help reduce cash usage within the union by 50% to promote greater financial sector stability and facilitate the growth and development of ECCU countries. Traditional banking between the countries of the ECCB will incur delays in which transactions using the CBDC will occur much quicker and cheaper, reducing overheads. If the citizens of the ECCU have not been buying crypto already, they may begin with this new initiative.

The ECCB was established back in October 1983 as a monetary authority for the surrounding countries such as Anguilla, Antigua and Grenada with many additions to the group over the years. The DXCD pilot will be introduced in two phases over 12 months for development and testing.

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