and international peer central
banks, to identify the issues
critical to the development of the
customer value proposition and the
resulting business requirements
for the digital EC pilot. As part of
pilot implementation, the ECCB
will ramp up its sensitisation and
education initiatives to facilitate
active public engagement
throughout all member countries
in 2019.
1. The appropriate treatment of the
DXCD by the ECCB to safeguard the
confidence in and the international
value of the Eastern Caribbean
currency.
2. The statutory business model as
enshrined in Article 4 of the ECCB
Agreement Act 1983.
• To regulate the availability of
money and credit;
• To promote and maintain
monetary stability;
• To promote credit and exchange
conditions and a sound
financial structure conducive
to the balanced growth and
development of the economies
of the territories of the
participating governments; and
• To actively promote through
means consistent with
its other objectives the
economic development of the
territories of the Participating
Governments.
3. The quantity of DXCD units
in circulation will be ultimately
controlled by the ECCB, as is
currently the case for our physical
notes and coins.
4. DXCD issuance will be centralised
with only the ECCB having the
authority to issue and redeem
DXCD. This restriction would ensure
resilience in system operation and
security.
5. DXCD units will be the liability of
the ECCB as is currently the case
with our physical notes and coins.
6. DXCD will be issued to
licensed bank and non-bank
financial institutions on a private
permissioned blockchain platform.
7. KYC & AML/CFT Compliance.
8. DXCD storage and transactions
will be conducted via DXCD
accounts and wallets which form
part of the design architecture.
9. Merchants/customers digital
wallets will be a part of the
digital payment network on the
blockchain to facilitate transactions
in DXCD.
10. The technical design of the
DXCD system will prevent any
transaction between DXCD wallets
from increasing or reducing the
overall supply of DXCD units in
circulation, thereby eliminating
credit and liquidity risks. (The DXCD
account cannot go into overdraft).
The pilot will be executed in two
phases: development and testing,
for about 12 months, followed by
rollout and implementation in pilot
countries for about six months.
Throughout the 18-month period
of the pilot, there will be education
initiatives to facilitate active
public engagement throughout all
member countries.
The pilot will be deployed in three
(3) member countries based on
the interest in participating in
the pilot expressed by licensed
financial institutions domiciled
in the countries as well as other
criteria, including institutional
capacity, geographic representation
Windwards and Leewards
and supporting technology
infrastructure.
It will be conducted under the
supervision of the ECCB and within
a controlled environment (sandbox
type arrangement). It will have the
www.slyoumag.com | July-August 2019
appropriate safeguards to ensure
the stability of the financial and
monetary systems:
• Boundary
• Measures to ensure protection
of participants (volunteer)
• Risk Management controls
• Monitoring and Evaluation
mechanisms
The ECCB is receiving technical
support from Pinaka Consulting
Ltd., our Blockchain Technical
Adviser, with project execution.
Conclusion
As I conclude, I call to
remembrance Nobel Laureate,
Derek Walcott, and his poem titled
“Prelude”. In this poem, Walcott
reminds us that “time creeps
over the patient who are too long
patient.”
Here in the ECCU, we can no
longer be patient when our
economies and people demand
transformation.
The time to act is now.
I issue a clarion call for partnership.
I invite non-bank financial
institutions, which provide wallet
services, to join this effort. I
invite telecommunication service
providers and other technology
companies to join this effort as we
develop a digital ecosystem from
which our region can reap huge
digital dividends. Most importantly,
I invite the citizens and residents
of the ECCU to share your views on
how this pilot could best serve you.
With laser-like focus, let us now
move forward with the EC digital
currency pilot project, determined
to make a significant difference
in the lives of the people of the
Eastern Caribbean Currency Union.
SL-YOU | Business, People & Lifestyle 49