How a Tiny Island Could Give Cryptocurrency a Big Boost

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Noelle Acheson is a 10-year veteran of company analysis and corporate finance, and a member of CoinDesk’s product team.

The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to our subscribers.

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Could we be getting closer to a blockchain-based, central bank-backed digital currency? Yes, but not in the way most people imagine.

The combination of technology, regulation and geopolitical shifts points to the emergence of a new type of digital asset: a cross-region blockchain-based currency.

Last year, Barbados-based startup Bitt announced the creation of a digital Barbadian dollar, a digital asset pegged to the value of its real-world counterpart and that could be traded on its blockchain platform. The news, while interesting, created little stir given the relatively insignificant size of the Barbados economy.

Now, however, other central banks in the region are joining the project – the platform will soon also handle Aruban florins and Bahamian dollars.

Given that the three currencies are pegged to the US dollar (although at different rates), switching from one to the other is a simple equation. And a smooth interchangeability would reduce friction and boost trade between the islands.

Sorely needed boost

Caribbean economies are being hit hard by the ‘de-risking’

Read more ... source: CoinDesk

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