Published 2 June 2023
Buckie Got It Media Source
Please see the youtube link below with an interview that was done with Mr. Rodney Taylor, Secretary-General of the Caribbean Telecommunications Union (Union) and Dr. Jan Schroder, Chief System Architect of CaribCoin, on the upcoming Webinar on Exploring the Potential of a Complementary Currency for the Caribbean—Caribbean Telecommunications Union (ctu.int).
The movement of capital in the Caribbean relies heavily on foreign correspondent banks and USD liquidity in the region. This makes cross-border payments expensive, slow, and banks in the region susceptible to de-risking. The region’s lack of financial connectivity limits the development of the CARICOM Caribbean Single Market and Economy (CSME), creating significant barriers for intra-regional trade which only accounts for 10% of CARICOM’s total trade, compared with the European Union, where intra-regional trade accounts for as much as 68%. Complementary Currencies have proven that they are a good instrument to tackle such situations in different parts of the world.
What is a Complementary Currency?
Complementary Currencies are defined as alternative forms of currency that work alongside a country’s legal tender and whose use is confined to a particular region, business network, or sector.
Design wise, complementary currencies may be backed by different forms of reserves, may be convertible to national currencies, and can take cash, digital, or hybrid mediums. They create liquidity and foster sustainable development by incentivizing the growth of regional business networks.
It is proposed that the Carib$, an asset-backed Complementary Currency that maintains a stable value, be introduced into the region.
What is the Carib$
The Carib$ is the new high-speed, low-cost cross-border payment medium that financially connects the CSME. Carib$ is an asset-backed Complementary Currency (CC), which maintains a stable value and is fully convertible to the region’s national currencies.
Carib$ is governed by a network of public and private-sector stakeholders, who are committed to the Caribbean’s sustainable development. In a quest to facilitate easy transnational payments throughout the region, Carib$ aims to create liquidity in the Caribbean and facilitate new trade and cross-border payments without threatening the integrity of fiat currencies or the stability of the region’s economies.