ECCB 2020-2021 Annual Report and Statement of Accounts

MONETARY STABILITY FINANCIAL SECTOR STABILITY

F ollowing an extensive period of development and product testing the Bank launched DCash, a blockchain based version of its EC currency, on 31 March 2021. The DCash, developed in collaboration with Bitt Inc, a Barbados-based company, was motivated by the Bank’s vision for greater payment system efficiency, financial inclusion through digital enablement and the promotion of innovation and competitiveness across the currency union. This initiative was also fueled by our aspiration to see a fifty percent reduction in the use of physical cash by the year 2025. It offers a faster, cheaper and safer payment option to the ECCU citizenry. The project, which officially launched in March 2019, was divided into two distinct phases; the first phase dedicated to software development and testing, followed by a live pilot in four of the eight ECCU territories. One of the key objectives of the DCash project was to promote financial inclusion across the ECCU, and ensure access to digital payment options to ECCU citizens who may have been otherwise excluded. This is achieved through the DCash model which allows persons who do not have bank accounts to access and transact using DCash. During the year, the project was negatively impacted by the effects of the COVID-19 pandemic, resulting in extensive delays in development, testing and training, and necessitating a revamp of the project plan. However, the requirements for physical and social distancing as a result of the pandemic, increased the need for more contactless payment solutions which translated into a heightened interest in the project. The challenges also enabled us to enhance the overall product and extend the pilot to all eight ECCU member territories. The Future of the EC Dollar is Digital - ECCB Launches DCash

DCash was officially launched in Antigua and Barbuda, Grenada, Saint Christopher (St Kitts) and Nevis and Saint Lucia and would be rolled out to the other four ECCB member countries by September 2021.

DCash in Action - ECCB Country Managers demonstrate the sending and receiving of DCash during the

View Official Launch DCash - 31 March 2021

EASTERN CARIBBEAN CENTRAL BANK ANNUAL REPORT 2020/2021 12