Major American Bank Partners With Crypto Startup

Aug 25, 2018 at 22:00 Update Date :Aug 25, 2018 at 22:00 UTC

The Central Bank of Curacao and Sint Maarten (CBCS), which happens to be the longest-serving bank in America, founded back in 1828, has made an announcement of collaborating with crypto-firm Bitt. They’ll look at issuing cryptocurrencies for the Curaçao and Sint Maarten island nations.

Rawdon Adams, the Bitt CEO maintains that a cryptocurrency will definitely be beneficial to the islands. Both of them are part of the Netherlands and come under the same monetary union as well, which means that the expenses borne by the CBCS in issuing all the physical currencies across the union will be much lower. It would also be useful for the residents of the states.

Adams said in a statement,

“This solution is particularly powerful in the case of cross-border transactions, which can take days even within a monetary union, and the cost of which is only increasing.”

The current acting President of CBCS Leila Matroos-Lasten has said that a cryptocurrency will also help in compliance for KYC/AML procedures.

“The CBCS herewith recognizes the transformative potential of innovation and technology and is committed to exploring solutions regarding efficiency of cross-jurisdictional transactions and digital payments whilst ensuring compliance and security assurances obtained by these state of the art (fintech) solutions,” Matroos-Lasten explained.

Bitt, a DLT company partly owned by Medici Ventures, which is a subsidiary of e-commerce firm Overstock, has collaborated with a central bank earlier as well, when the firm had signed an MOU along with the Eastern Caribbean Central Bank. Around the same time, Medici Ventures had also decided to increase its holdings in the firm up to 8.6%.

Very similar to the understanding that Bitt signed with the CBCS, the aim of the first deal was to create, issue, and examine tech that would serve to lessen the risk factors of the Eastern Caribbean Currency Union by improving all the procedures involving KYC policies and Anti-terrorism financing. The prior understanding also aimed into the idea of a new cryptocurrency for the union.

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