Barbados announces official issuance of blockchain-based fiat currency

Rage Comment : This may be the first national legal tender system based on blockchain. Although Barbados was discussing this issue last year, no one would have thought that this day would come so soon. Eliminating cash is the wish and goal of many central banks, and blockchain technology can not only help achieve this, but also help realize programmable currency and programmable finance, the "holy grail" that has been pursued. This may be a model for other major central banks to learn from. I believe that in the near future, we will see more central banks issuing digital currencies based on blockchain.

Translation: Annie Xu

Bitt has issued a blockchain-based Barbadian dollar to stimulate bank savings in Barbados.

The announcement follows two events in Barbados. The first was a launch event at the local Buzo Osteria Italiana restaurant on Monday. The second was a global launch event on Tuesday. The 2016 Financial Cryptography Conference and the Data Security Conference were held in Barbados at the same time.

So far, the Caribbean Broadcast Corporation (CBC) has reported on the Bitt launch, highlighting Bitt’s goal of building a financial settlement network among the 15 countries of the Caribbean Community (Caricom).

Bitt CEO Gabriel Abed told CoinDesk the official launch will kick off the third phase of its planned release.

Our goal is to build an ecosystem. Nine months ago, we launched the exchange and now we are entering the second phase, issuing a legal digital currency. Whatever you call it, it is a digitized promissory note that circulates in the Barbados market.

Now Bitt plans to develop a network of ATMs that would allow users to exchange digital currencies and bitcoin for hard currency, as well as help startups compete with exchange giants such as MoneyGram and Western Union.

Bitt is now trying to develop a mobile app that allows users to check KYC (Know Your Customer) and anti-money laundering status. These are helpful for establishing a currency trading network.

He advised potential Barbadian users to fully support the scheme, including small business owners who want to provide new business to clients.

There are many people in Barbados who want to register for the software but have no way to do so. In this island country, we don’t have e-commerce, but we all have mobile phones.

Since 2015, Bitt has raised a total of $150,000 and built a team of 16 people.

Technology Development

To create its own digital currency, Bitt used the Colored Coins protocol, using the Bitcoin blockchain as its foundation.

Under the protocol, the new currency would be able to be used as a component of bitcoin, the company said in its informal publication.

Bitt’s Barbadian dollar can therefore be used as a digital asset and its value is equivalent to government-issued currency.

Gabriel Abed said the company's digital currency transaction records will be stored in a peer-to-peer Bitcoin wallet, making it easier for the government and local regulators to monitor.

In the future, Bitt will use new technologies to upgrade the functionality of the Barbadian dollar. For example, Liquid and Blockstream plan to enable Bitcoin funds to flow between securities trading companies. BitGo supports transactions that do not require confirmation.

These startups believe that the above technologies can attract users who may be troubled by Bitcoin's unpredictable fluctuations and slow confirmation speed.

Call for Bitcoin Unification

In the interview, Gabriel Abed called for more next-generation money service options in Barbados and the Caribbean.

He believes:

Bitcoin financial services will bring real help to people. Competition among developers will hinder its development.

"I need the Bitcoin Commonwealth, it's the last thing we can do before the government bans the technology. We look at the ecosystem now and we know it's possible."

Some limitations of the bitcoin blockchain are threatening its growth as it seeks to reduce exchange costs for real-world users.

Now is the time to give it a boost. Yesterday was a formality. Now Bitcoin is here and we are right in front of you, providing you with a free solution.

Gabriel Abed’s talk sought to portray a larger financial goal beyond discussing how the Bitcoin blockchain could be widely adopted by all users.

He concluded:

Bitcoin and blockchain technology are great, but we plan to use this technology in a completely new ecosystem.