By Nathan Ferguson
DCash – the CBDC (central bank digital currency) of Caribbean – is at last completely operational for another time following a downtime of two months. The network of the CBDC underwent a downtime in 2022’s January. The Eastern Caribbean Central Bank’s DCash has started again its activities as declared by the bank in a post to inform the residents regarding the issue on 9th March, stating that a technical bug caused the malfunction.
DCash restarts its proceedings
The respective CBDC was initially introduced in 2021’s March, permitting the residents to transact funds without the need for a bank account, along with a series of other benefits. Seven out of the eight cumulative countries within the ECCB are presently utilizing DCash, and Anguilla is also preparing to be a part of them. In this year’s January, the respective digital currency has been offline till the implementation of the latest fix.
The reputation of the respective digital currency has been impacted by this however it appears that everything is back to normal again, as was the intention, with complete operability being accessible now. Many upgrades have additionally been applied, in which an improved process of certificate management is also included.
The downtime indicates the precarious state of governments introducing CBDCs as well as the difficulties to be undergone by them. Although they still intend to eliminate the digitalized currencies’ benefits, they ought to confront likely risks. As a result, a few of the countries are slowly proceeding in this direction, in which the United States is also one.
The inevitability and challenges of CBDCs
DCash’s downtime points out that there are frequent risks involved in a CBDC’s utilization. Several countries have declared their inclination to operate on CBDCs. The others, that have launched their digital currencies, are working on huge pilot projects. The advantages related to the reduction in time and money are frequently being witnessed in the case of the CBDCs, nonetheless, grave consequences could be led to by any of the technical problems.
Because of this reason, the United States has asserted to take the respective decision at right time instead of being the first one hastily. The MIT and Boston Fed have been carrying out CBDC testing, and the findings have reportedly been positive up till now. The latest executive directive issued on the behalf of US President Joe Biden additionally referred to a CBDC, clarifying that the country is speeding up its development.