Opportunities and risks associated with the advent of digital currency in the Caribbean
This report examines the usage of digital currency technology in the Caribbean subregion with a view to drawing attention to the opportunities and risks associated with this new phenomenon. It discusses the broader context of an emerging activity at the global le vel and considers how this technology could address subregional deficiencies in the electronic payment infrastructure. The report also discusses mobile money solutions, and the relationship of that technology to digital currency.
The report also discusses mobile money solutions, and the relationship of that technology to digital currency.
This study utilizes three main sources of data collection: a literature review of subregional and international sources, a solicitation of views from experts in various fields engaged in the sphere of electronic payments, and a formal survey of the subregion’s Central Banks regarding awareness of digital currency and mobile money in the evolving landscape of electronic payments.
The report seeks to present Caribbean policy makers with information to begin the process of performing a balanced evaluation of opportunities and risks associated with digital currency in the Caribbean. The study finds that the Caribbean could benefit from innovations to payments technology.
While digital currency and mobile money are technologies that could make a contribution in this area, their development is retarded by a reluctance to engage with them on the part of financial regulators. There is a need to expand the scope of participation in the regulatory process to include institutions that advocate for and promote innovation.
UN Symbols: LC/L.4131; LC/CAR/L.482
Series No. 46