Blockchain Startup Signs MOU With Central Bank of Curaçao and Sint Maarten

Barbados-based fintech startup Bitt Inc. has signed a Memorandum of Understanding with the Central Bank of Curaçao and Sint Maarten to research the possibility of issuing a digital guilder, according to an August 12 press release.

The parties signed the MOU in order to develop a central bank digital currency to facilitate financial payments within the monetary union of Curaçao and Sint Maarten.

Per the announcement, the bank is looking to "Reduce the level of cash usage within the monetary union" and facilitate "More secure, more Anti-Money Laundering and Know Your Customer compliant" transactions between the islands.

"The MOU clears the way for collaboration and information sharing regarding a feasibility study, designed to determine the viability and functionality of using a central bank-issued digital guilder within the financial ecosystems of each member, and across both members of the monetary union."

Adams further explained that printing fiat money by a central bank and distributing it between the two member states is costly and challenging.

Conversely, digital currency can be used on mobile wallets and makes it easier to make transactions and payments in the monetary union in a more secure way.

That year the company partnered with the central bank of Barbados for the advancement of pilot blockchain projects.

While the bank of the Dutch Caribbean regions demonstrates openness to issuing its own digital currency, the divisional director of the Dutch Central Bank, Petra Hielkem, said that due to the volatility of cryptocurrencies and the possibility for consumer risks, it cannot be considered money.

She added that, while cryptocurrencies are not "Real money," the bank has no plans to ban them.

Recently, Iran announced its commitment to create its own state-issued cryptocurrency aiming to circumvent U.S. sanctions, despite the fact that earlier the central bank banned domestic banks and other financial establishments from dealing with crypto, citing money-laundering concerns.