1. CENTRALE BANK VAN CURAÇAO SINT MAARTEN
The digital Caribbean Guilder alternative
Cedric Pietersz
Treasurer
CBCS

2. Table of contents Circumstances Curaçao & Sint Maarten
Digital Caribbean Guilder
Competing alternatives
Considerations when implementing digital Caribbean Guilder

3. Circumstances
Curaçao & Sint Maarten

4. Demographics – age distribution
Circumstances Curaçao & Sint Maarten
Demographics – age distribution

5. Demographics – age distribution
Circumstances Curaçao & Sint Maarten
Demographics – age distribution

6. Internet usage Circumstances Curaçao & Sint Maarten
Location where internet is used by gender (in %)
Total
At a commercial establishment (paid use at internet cafés, hotels, airports etc.) 39
At an educational institution 19
At home 92
At somebody else’s home 33
Moving from place to place, not at a fixed location (mobile) 37
At a public facility (such as public library, community center, McDonald's, Starbucks etc.) 26
At work
At somebody else’s work 9
Other location 7
Source: CBS, ICT & Media survey 2017

7. Internet usage Circumstances Curaçao & Sint Maarten
Location where internet is used by age (in %)
  Age groups
06-14
15-24
25-34
35-44
45-54
55-64
65-74
75+
At a commercial establishment (paid use at internet cafés, hotels, airports etc.) 19 60 50 45 39 26 21 18
At an educational institution 29 57 17 7 6 1
At home 94 90 89 91 93 96
At somebody else’s home 34 56 42 32 27 15
Moving from place to place, not at a fixed location (mobile) 12 46 44 14
At a public facility (such as public library, community center, McDonald's, Starbucks etc.) 22 48 31 25 23 13 10
At work 16 9 2
At somebody else’s work 4 8 5 3
Other location
Source: CBS, ICT & Media survey 2017

8. Internet usage Circumstances Curaçao & Sint Maarten
Different uses of the internet during the last three months by age (in %)
 Age groups
15-24
25-34
35-44
45-54
55-64
65-74
75+
ONLINE
For internet banking 17 48 40 42 35 32 25
Purchasing or ordering products or services 21 36 24 18 9 2
Selling products or services 6 14 7 10 3
Source: CBS, ICT & Media survey 2017

9. Electronic payments Curaçao 6,761 247,717 136,438 160,000 Sint Maarten
Circumstances Curaçao & Sint Maarten
Electronic payments
2018
Point of Sale units
Debit cards
Credit cards
Population
Curaçao
6,761
247,717
136,438
160,000
Sint Maarten
2,139
  62,322
  31,164
40,000
Cashless organizations:
Tax receivers office;
sales offices Curacao water & power company; and
sales offices local telecom provider

10. Payment opportunities
Circumstances Curaçao & Sint Maarten
Payment opportunities
E-government initiatives progressing on the document submittal side, but facing challenges on the (web) payment side
Today it is not possible to go the government, power company or tax receivers website and pay from your debit account (instantly)
Same for online domestic web stores
Only credit card payments are possible

11. Digital Caribbean Guilder

12. CBCS strategic objectives 2018 - 2020
Digital Caribbean Guilder
CBCS strategic objectives
Introduction of a new domestic currency for the Countries of Curacao and Sint Maarten
The Caribbean Guilder (Cmg) to replace the Antillean Guilder (Ang)
October 10, 2010 based on constitutional change
Monetary Union legislation of 2010

13. Introduction new domestic currency
Digital Caribbean Guilder
Introduction new domestic currency
Considerations:
Design and print of new banknotes and coins
Storage and distribution of new banknotes and coins locally and between the two countries
Feasibility study for digital Caribbean Guilder issued by the CBCS

14. Motives for digital Caribbean Guilder
Cost savings in design and printing
Efficiency in storage and distribution
Potential to promote financial inclusion
The digital Caribbean Guilder should operate along the existing cash circuit in medium term

15. Digital Caribbean Guilder
Feasibility study
Research objective to understand the concept of CBDC and the implications on:
Digital currency system and payments;
Monetary policy and financial stability; and
Legal tender considerations
Given the circumstances of Curaçao and Sint Maarten

16. Feasibility study cont’d
Digital Caribbean Guilder
Feasibility study cont’d
Based on the results, a pilot study will be considered
In cooperation with a regional technology provider (DLT/ blockchain)

17. Digital Caribbean Guilder
Caveats of the study
Digital Caribbean Guilder for the purpose of use by the general public
Digital Caribbean Guilder to have stable value (1-1 to fiat currency)
Value based system
Permissioned DLT network
24/7 available
Inclusion of domestic banks in the distribution of digital Caribbean Guilder

18. Competing alternatives

19. CBCS strategic objectives 2018 - 2020
Competing alternatives
CBCS strategic objectives
To improve the efficiency of the national payment system
Implement additional retail payment system rail to improve efficiency in retail domestic payments
(availability, speed of payments and transaction cost)

20. Alternatives competing with the digital Caribbean Guilder
Competing alternatives
Alternatives competing with the digital Caribbean Guilder
Retail fast payments through commercial bank money
E-money institutions (prepaid cards and wallets)

21. Considerations when introducing digital Caribbean Guilder

22. Efficiency in peer to peer payments
Considerations when introducing digital Caribbean Guilder
Efficiency in peer to peer payments
Maximum amounts in wallets to avoid risks of a run in difficult times
Internet availability on smart phones
Cyber security of the wallets and network
AML/ KYC procedures for opening wallets
Inter-operability, multiple eco-systems

23. Digital Caribbean Guilder
Considerations when introducing digital Caribbean Guilder
Retail
Fast Payments
NACS2
RTGS
Digital Caribbean Guilder
E-Money
NACS2 ACH
CASH

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