Microsoft Word - ECCU Creative Youth Competition Essay KAH

There are opportunities for the reduction of theft. When a credit card is stolen it can be

easily blocked but when money is stolen nobody has control of what the thief does with it. Other

crimes like tax evasion, money laundering and terrorist financing will also be hindered.

With no cash persons will be unable to withdraw money from the financial system,

meaning that governments and the Central Bank will be able to leverage greater control over the

economy through monetary policy. Instead of hoarding money during economic downturns,

people will have no choice but to invest, lend and spend.

Digital money will bring greater convenience; no need for bank visits and no more long

queues. Transactions can be conducted at any time around the clock and from anywhere. Imagine

not having to wait in line to deposit or withdraw money, saving time and energy.

An attractive feature for parents is that restrictions could be applied to their children’s

digital wallets to control what they buy. This leads to transparency and ease in record keeping.

There are however, factors that must be grappled with. The islands of the ECCU are

labour intensive with a large part of the domestic product being agriculture and many persons

working in the primary sector. This portion of the population relies heavily on cash to conduct

business. Persons such as farmers, fisher folk and street vendors use cash on a daily basis; they

largely make up the “unbanked” sector.

Our technological infrastructure is not yet advanced enough to facilitate this change.

Digital money requires up to date infrastructure which for some institutions would necessitate

significant capital outlay.

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