The absence of a direct inter-island settlement system in the Caribbean presents a significant obstacle to intra-regional trade, which currently represents only approximately 10% of CARICOM’s total trade. Presently, cross-border payments heavily rely on foreign correspondent banks, resulting in high costs, slow processing times, and vulnerability to the ongoing de-risking trend. This exclusionary situation is even more pronounced for micro, small, and medium-sized enterprises and entrepreneurs who struggle to obtain merchant accounts for settling cross-border transactions. A stable, asset-backed Caribbean Complimentary currency, fully exchangeable with the region’s national currencies, has the potential to serve as a financial bridge, expediting the Caribbean Single Market and Economy (CSME) by providing a direct, rapid, and cost-effective cross-border payment solution.
The introduction of a Caribbean Complimentary currency could yield several advantages for the region’s economy, including, but not limited to, stimulating intra-regional trade, addressing issues related to excessive USD dependency and economic losses, and safeguarding against significant volatility. Carib$, operating as a complementary currency alongside Caribbean national currencies, aims to connect the region’s economies and create fresh business opportunities, thereby offering a swift route to CSME.
CaribCoin, a FinTech company headquartered in Barbados, has developed Carib$, an asset-backed digital complementary currency (CC) designed to facilitate fast, cost-effective cross-border payments among businesses within CARICOM.”
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