The UN Economic Commission for Latin America and the Caribbean (ECLAC) has published a report examining digital currencies and how they can be used to address regional payments issues.
Written with the aim of providing local policymakers with a balanced appraisal of the benefits and risks of digital currencies such as bitcoin, the report examines the use of the technology in the Caribbean and discusses the broader context of its emerging use at the global level.
Notably, the paper recommends further exploration into the technology with the ultimate aim of turning the region into a FinTech and digital currency hotspot.
The author writes:
"Given the deficiencies in the sub-regional payments infrastructure, and the broader need to increase participation in the digital economy, it is incumbent upon Caribbean authorities to ... examine the opportunities for innovation that digital currencies offer."
The commission further considers how digital currencies could address regional deficiencies in the electronic payment infrastructure, and provides an overview of mobile money solutions and their relationship to digital currency.
The study was based on three main sources of data: a literature review of international and regional resources, input from experts in electronic payments and a formal survey of Caribbean central banks.
Overall, the author recommends an "inclusive approach" to the exploration of digital currency that provides sufficient opportunity for public input and policy review, similar to the process adopted by the UK.
He further suggests an alignment of policy across the different countries of the region, in order to reduce the costs of compliance and create a competitive marketplace in the region for the digital currency sector.
Officially recognised digital currency initiatives could also be beneficial, the paper says.
Predicting the future increased use of cryptocurrencies in mobile payments, it adds that policy makers, entrepreneurs and academics could look at developing specialised services and products for export, turning the region into a FinTech hub.
Trinidad image via Shutterstock
Zedd, 3LAU and Big Sean: Tickets On Sale for First Blockchain Music Festival
Tickets for the first music festival set to be powered by blockchain technology are now on sale.
Scheduled for this fall, the Our Music Festival is launching its own virtual currency — the OMF toke
How Crypto Reacted to This Week's SEC Bitcoin ETF Delay
It was an expected result at an unexpected time.
The news broke on August 7 that the U.S. Securities and Exchange Commission (SEC) is kicking the can on its decision to approve or disapprove a prop
Microsoft Looks to Trusted Computing for Blockchain Security Boost
Two newly published patent applications from Microsoft suggest that the software giant is looking at the use of trusted execution environments, or TEEs, within its blockchain offerings.
Crypto Millionaire Lost 5,500 Bitcoins in Alleged Investment Scam
A 22-year-old cryptocurrency millionaire has lost more than 5,500 bitcoins in an alleged investment scam in Thailand – one that drew public attention due to the involvement of a local actor.
China's Communist Party Publishes Blockchain Tech 101
China's Communist Party is moving to make blockchain literacy the norm across public offices with the publication of an explainer for officials and members.
Released by the publishing house of the
Blockchain Social Network Minds Is Migrating to Ethereum for Launch
Blockchain-based social network Minds is migrating its platform to the ethereum network, the startup announced Monday.
After roughly four-and-a-half months on its Rinkeby test network, the startup
Bitcoin Trading Is Illegal in Saudi Arabia, Warn Watchdogs
A governmental committee comprised of Saudi Arabian regulators has issued a statement clarifying that cryptocurrency trading is illegal in the kingdom.
According to a statement issued Sunday, the s
Former S&P President Leads Seed Round for ICO Compliance Startup
Regtech and compliance startup iComply has just completed a seed funding round led by former Standard and Poor's president Deven Sharma.
The firm – which seeks to develop standard compliance tools