The Eastern Caribbean Central Bank (ECCB) is going to conduct an experiment on creation on the basis of the blockchain digital currency Central Bank (CBDC), which may become legal tender in the region in 2020.

Contract pilot DXCD — the digital version of the Eastern Caribbean dollar (XCD) is the Central Bank signed with FINTECH startup Bitt from Barbados. Technical support to the project will have a company Pinaka Consulting.

According to the statement Bitt, the pilot project “will include securely minted and released a digital version
the Eastern Caribbean dollar.” DXCD will be distributed and used by licensed financial institutions and nonbank financial institutions in the Eastern Caribbean currency Union (ECCU).

Stablon DXCD is intended for use in financial transactions between consumers and sellers, as well as peer-to-peer transactions such as sending money to friends or family members within the ECCU. Funds can be sent via smart devices, e.g. smartphones.

“This is not an academic exercise. DXCD not only become the world’s first digital currency legal tender, which is issued by the Central Bank on the blockchain, but this pilot project will also be deployed in real time on the basis of the CBDC with the aim of gradually implementing the public”, — said the Governor of the ECCB , Timothy N. John. Antoine (Timothy N. J. Antoine).

The project is part of the Strategic plan ECCB for the years 2017-2021, which aims to reduce the use of cash in the Union by 50%, as well as ensuring greater stability of the financial sector and stimulating the development of the member countries of the ECCU, said the head of the ECCB.

The pilot project will begin this month, the first phase — development and testing of DXCD — designed for 12 months. At the second stage within six months digital currency will be implemented in several pilot countries. ECCU is formed by the member countries of the organization of Eastern Caribbean States (OECS) comprising Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines and Montserrat and Anguilla.

Recall that for the first time about the possibility of releasing DXCD became known last month after the signing of the Memorandum of understanding between the government of Montserrat and startup Bitt.