ECCB to pilot blockchain technology

The technology promises to provide digital payments and settlements platform with high level of fault-tolerance and security
17 March 2018   1248

Eastern Caribbean Central Bank and fintech company Bitt, Inc. (Barbados) have announced their partnership to pilot a blockchain technology among the member countries of Barbados. Pilot testing of the blockchain technology is going to focus such segments of the banking system as Know Your Customer, Anti-Money Laundering and Combating the Financing of Terrorism. Another key purpose of the tests is establishing Eastern Caribbean digital currency on par with the physical one.

This FinTech pilot is part of the Bank’s Strategic Plan 2017-2021. The aim of the pilot is to ascertain the suitability of blockchain technology to help boost economic growth and competitiveness in the region consistent with the ECCB’s monetary and financial stability objective.

 

Timothy N.J Antoine

Governor, ECCB

As for the member countries as a testing ground, those are Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. Bitt, Inc. will conduct the pilot testing under the supervision of ECCB in 2018. Such project is not new for the fintech company: in February the company agreed to develop a digital payments platform for the island Montserrat that happens to also be in Caribbean region.

We are proud to collaborate with the ECCB in the development of this pilot study to explore technological solutions to some of the all too real problems affecting the region, its institutions and most importantly its people.

 

Rawdon Adams

CEO, Bitt Inc.

The blockchain technology attracts the attention gradually in terms of a fusion between financial institutions and fintech companies, for instance in Lithuania, South Africa, Sweden.

Experts Ask China Don't be in Rush For Own Crypto

Ex deputy chairman of the Bank of China said the CB should take part in the development of international regulation of crypto assets firstly
27 January 2020   126

China should strengthen cooperation with other countries to regulate the cryptocurrency industry, and not accelerate the development of its own digital currency, experts say. It is reported by the South China Morning Post.

So, the former deputy chairman of the People’s Bank of China, Zhu Min, noted that the central bank, which is developing a digital yuan in many ways as Facebook’s Libra response, should first of all take part in the development of international regulation of such assets.

Ba Shusong, chief China economist for the Hong Kong stock exchange, also believes that monitoring digital currencies requires a system that is controlled from different angles, as they have the potential to change the global financial system.

You would need to first improve the regulatory framework for [financial] technology. There is a need for global cooperation for an alternative regulatory framework.

 

Ba Shusong

Chief China economist for the Hong Kong stock exchange

 

Many fear that the popularity of Libra could strengthen the dominant role of the US dollar. At the same time, Deutsche Bank analysts believe that the digital yuan will undermine the primacy of the dollar in the global financial market.

Hiromi Yamaoka, the ex-head of the Bank of Japan supervisor of payment and settlement systems, also emphasized that the upcoming launch of Libra has caused competition among central banks seeking to make their currencies and services more attractive.

Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology.

 

Hiromi Yamaoka

Former head of the Bank of Japan’s (BOJ) division overseeing payment and settlement systems