• After a two-month hiatus, Caribbean CBDC DCash is back online

  • DCash, the digital currency of the Eastern Caribbean Central Bank, is now fully operational again after a two-month hiatus. The CBDC network fell down earlier this year in January.

    DCash, the Eastern Caribbean Central Bank’s CBDC, has reopened after being closed for nearly two months. On March 9, the bank issued an update to customers, claiming that the problem was caused by a ‘technical error.’

    DCash is now available online.

    DCash was initially introduced in March 2021, allowing citizens to transfer money without the need for a bank account, among other perks. Seven of the eight ECCB member countries use DCash, with Anguilla on the way.

    The digital currency fell offline in January 2022 and remained thus until the recent patch. This harmed its reputation, however it appears that everything is back to normal, with full functioning now available. Several enhancements, including an improved certificate management mechanism, have also been incorporated.

    The timeout emphasizes the risky nature of governments launching CBDCs, as well as the obstacles they will confront. While they still want to reap the benefits of digitized currencies, they must be wary of possible pitfalls. As a result, certain countries, not least the United States, are moving slowly.

    CBDCs are unavoidable, but there are still obstacles.

    The downtime of DCash serves as a reminder of the risks associated with CBDC consumption. Many countries have stated their intent to work on a CBDC, and those that have established one are conducting substantial trial programs.

    CBDCs have obvious cost and time savings benefits, but any technological faults could have major ramifications. For this reason, the United States has stated that it would prefer to be correct rather than first.

    The Boston Fed and MIT have been testing CBDC, and the findings have so far been positive. The recent executive order by Joe Biden also mentioned a CBDC, indicating that the United States is accelerating the creation.

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