Microsoft Word - ECCU Creative Youth Competition Essay KAH

Despite these concerns, there is an opportunity being that since physical cash transactions

can be anonymous, playing a large role in monetary crimes like tax evasion and money

laundering, digitized transactions can help counter that. “ Crypto assets work exclusively on the

internet by using a network of computers that lend their processing power to verify and register

all the transactions made ” (Steemit, 2018). Due to this, these crimes would not have to be

worried about especially since some islands are considered havens for these criminals (The

Economist Group, 2017).

Economic growth is an important opportunity. The region has been stunted with slow

economic growth (ECCB GDP Annual) and in recent years, there have also been high levels of

debt. Utilizing cryptocurrency has been considered to help improve regional trade which has

been affected due to retracting from international banks and foreign reserves. With the issue of

digital currencies for example, the Digital Eastern Caribbean dollar (DXCD) by the ECCU to

boost regional trade, consumers may have a better bargain since exchange costs in relation to

the local currency for USD and vice versa would no longer exist or would be reduced due to the

use of said digital currencies. Improved profits from these nonexistent/reduced foreign exchange

costs could mean that businesses would offer better prices to customers.

With all these challenges and opportunities, we cannot forget the realities, the biggest

being that it is complicated to go completely cashless. What if digital transactions spiral out of

control? As mentioned, many in the region do not have basic banking services. After this is

catered for, the basics of digital transactions would have to be taught. Again, this process will

not be understood by everyone is a short time unless packaged in a way in which it could be

broadly adopted by everyone.

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