or vendors doing business in different Caribbean territories.

Jamaica and Barbados will, in the next six months, become the first two territories to access a new pan-Caribbean digital payment settlement system called CaribDollar (Carib$).

Carib$, a stablecoin or kind of cryptocurrency, is being developed by partners Abed Ventures Inc out of Barbados and German entrepreneur Dr Jan Schröder.

Addressing a virtual conference hosted by the Caribbean Telecommunications Union (CTU), Schröder, chief system architect at CaribCoin Inc, said that while there were already CBDCs, the regional stablecoin that is currently being developed has the potential to transform trade and the wider Caribbean business landscape.

He indicated that a stablecoin similar to cryptocurrency can have its value pegged against legal tenders like the US dollar and other commodities such as gold or petroleum.

Carib$, he therefore said ,”will be backed by Caribbean assets and will enable the settlement of accounts between traders or vendors doing business in different Caribbean territories (cross-border) in the legal tender of each party’s country of origin without the use of intermediaries such as banks, using an online platform to transfer the electronic funds.”

The digital payment system will also provide a solution for the unbanked and will also allow small traders and micro, small and medium-sized enterprises (MSMEs) to make payments seamlessly and instantaneously and through safe and private channels.

Speaking at the recently held event, Trinidad and Tobago-based economist Marla Dukharan said that the region is in need of innovative solutions to meet the need of the poor and those operating in the informal economy.