At present, six countries can be identified that are already issuing digital currencies from their respective central banks. These countries are China, the Bahamas, and four Caribbean islands: “Saint Kitts and Nevis,” “Antigua and Barbuda,” “Saint Lucia,” and finally “Grenada.”
In recent years, digital currencies have taken on great relevance due to the rise of Bitcoin and the inclusion of the issue on the agendas of economic organizations worldwide and central banks. According to an economic report, six countries have their own virtual currency, while another 46 countries plan to follow the same path.
One of the countries with its own digital currency is The Bahamas, called Sand Dollar, which was issued in October last year and made available to the 393,000 inhabitants of the archipelago. It is considered the first electronic currency of a country. This currency was launched in a pilot program using 48,000 Sand Dollar on the islands of Abaco and Exuma. Each Sand Dollar is linked to the Bahamian dollar. This, in turn, is linked to the US dollar and is equivalent to approximately $3,695; this currency is already accepted in Nassau.
Another currency is the CiberYuan, issued by the People’s Bank of China in April 2020, so it is still in the development phase and only circulates in closed environments. Hence, it is not part of the current system of coin issuance system sovereign.
According to what the People’s Bank of China plans, this digital currency will not be issued in large quantities to the public in the short term. In the first stage, the digital currency will be offered only to commercial banks and other operators and then to the public, which will transfer the money in their bank accounts to the digital version of the Yuan and deposit it in their electronic currency wallets.
4 Caribbean Islands
In the Caribbean, the islands of “Saint Kitts and Nevis,” “Antigua and Barbuda,” “Saint Lucia,” and “Granada” also have their respective digital currencies (DCash), which not only circulate in each country but also can be used in different transactions to other countries.
DCash is issued by the Central Bank of the Eastern Caribbean; it becomes the first currency based on the blockchain technology introduced by a monetary authority worldwide and makes use of the same system for transactions carried out with cryptocurrencies such as Bitcoin.
Officials from the Central Bank of the Eastern Caribbean have stated that in September 2021, the digital currency will also be available in Anguilla, Dominica, “Montserrat, and Saint Vincent,” and the Grenadines places that are part of the eight island economies under their jurisdiction.
In this way, it is believed that digital currencies will increase financial inclusion and allow the currency to be a kind of “universal agent” that is used in operations through options such as Visa or MasterCard anywhere in the world.
What do you think about this topic? Do you think there will soon be more countries using digital currencies?
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