CBCS Agrees to Bitt Partnership For Issuing Central Bank-backed Cryptocurrency
CBCS Agrees To Partnership With Bitt To Work Towards Bank-Backed Digital Currency
Bitt is a blockchain startup in Barbados and a part of Medici Ventures by Overstock. They may be just beginning their time in the financial industry, but they already have big dreams. They have decided to collaborate with another Caribbean bank – the Centrale Bank van Curaçao en Sint Maarten (CBCS). During their collaboration, they hope to establish and launch a digital currency for both nations, which is supported by a central bank.
The partnership is beginning with all of the official documents in place to start moving along, including a memorandum of understanding (MOU) between Bitt and CBCS, which was announced Monday. Hopefully, this relationship will help both sides to eliminate the current Antillean guilder for the Netherlands, instead introducing a digital Curaçao and Sint Maarten guilder.
In this project, both parties plan to comply with the KYC/AML technology that the United States’ SEC requires for a crypto platform to function within their jurisdiction. With that decision, it is possible that this endeavor will be available for US residents as well.
The acting president for CBCS, Leila Matroos-Lasten, commented that their collaboration with Bitt, along with the MOU, has to do with their
“regional experience in digital payments and its macroeconomic views.” She also said, “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.”
By signing an MOU at all, it is clear that the bank holds some value in the concept of blockchain technology. According to Matroos-Lasten, the bank wants to find different solutions
“regarding the efficiency of cross-jurisdictional transactions and digital payments whilst ensuring compliance and security assurances obtained by these state of the art [fintech] solutions.” In her opinion, this attempt to integrate blockchain would be “beneficial to everyone.”
Bitt must be on a role with local banks, because this MOU is only a few months after they decided to collaborate with the Eastern Caribbean Central Bank, though the MOU was slightly different. The Eastern Caribbean Central Bank reaches to Anguilla, Antigua and Barbuda, the Commonwealth of Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines. This kind of publicity and widespread acceptance of Bitt’s blockchain technology would positively impact the success of Bitt.
With this new addition, it is possible that the Central Bank would be able to issue its own cryptocurrency, which would give customers a bank-backed token with greater security.