Bitt And CBCS To Create Central Bank-Backed Crypto In The Netherlands Antilles
Despite a drop in the crypto industry, it has continued to be the most appealing option for smaller second and third world countries. Its appeal has much to do with the connection to the rest of the world financially, especially since it does not require approval for a bank account to get involved. Small island states have been looking into the industry lately to see if it meets their needs, and the latest country to join the bandwagon is the Netherlands Antilles.
The central bank for the area, Centrale Bank van Curaçao en Sint Maarten (CBCS), is actually the entity initiating this concept, hoping to develop a digital version of their existing ecosystem. This new project would enable citizens to make digital payments, which is most likely why CBCS recently signed a memorandum of understanding (MOU) with Bitt, Inc. Bitt Inc. is a sector of Medici Ventures that supports the use of cryptocurrency.
Rawdon Adams, the CEO of Bitt, released the following statement:
“The MOU clears the way for collaboration and information sharing regarding a feasibility study, 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.”
Still, with this company being so new, it is interesting that the CBCS chose it over more seasoned digital currency, like Bitcoin Cash, if the intent is to use it for retail transactions. In fact, other countries that are diving into the crypto industry have already collaborated with Bitcoin Cash, including the country of Cyprus.
Other countries that are getting involved with cryptocurrency, like Venezuela, Iran, and Russia, are looking to this asset as a way to get out of economic sanctions. Unfortunately, there are many suspicious consumers that believe that this use of crypto is just another way that their countries can track what they are doing.
The CBCS remains positive about the potential of cryptocurrency in their island. Acting President Leila Matroos-Lasten understands the “potential of innovation and technology” that this opportunity provides.
In her statement, she goes on, saying,
“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 process to involve the central bank is a long one. As a result, it may be better for countries to opt for a stable coin, rather than an altcoin with little history to prove its viability.