For decades, regional trade within CARICOM has been challenged by cumbersome payment systems, cross-border currency exchange headaches, and a lack of transaction transparency. Now, the emergence of blockchain technology and Central Bank Digital Currencies (CBDCs) is set to revolutionize how Caribbean countries trade with each other—and with the world.

From The Bahamas’ Sand Dollar to the Eastern Caribbean Central Bank’s DCash, the region is embracing digital currency innovation faster than many developed markets. This article explores how blockchain and digital currencies are enhancing trade efficiency in CARICOM, the opportunities they unlock, and what challenges remain.

Understanding Blockchain and Digital Currencies

What is Blockchain?

Blockchain is a decentralized digital ledger that securely records transactions across a distributed network. It’s:

  • Immutable: Once entered, data can’t be changed.

  • Transparent: All parties can verify the transaction.

  • Decentralized: No single authority controls the data.

In trade, this means faster payments, reduced fraud, automated compliance, and verifiable transaction histories.

What Are Central Bank Digital Currencies (CBDCs)?

CBDCs are government-issued digital versions of national currencies. Unlike cryptocurrencies like Bitcoin, CBDCs are backed by central banks and maintain monetary stability.

Pioneering CBDCs in the Caribbean

The Caribbean is a global leader in the implementation of CBDCs. Here’s a look at major developments:

1. Bahamas – The Sand Dollar

Launched in 2020, the Sand Dollar was the world’s first fully deployed CBDC. It’s used for:

  • Digital peer-to-peer payments

  • Government disbursements (e.g., social benefits)

  • Facilitating transactions between islands with different banking access

Its success shows how digital currencies can empower small-island economies.

2. Eastern Caribbean – DCash

Developed by the Eastern Caribbean Central Bank (ECCB), DCash is in use across:

  • Antigua & Barbuda

  • Grenada

  • St. Lucia

  • Dominica

  • St. Vincent and the Grenadines

  • St. Kitts & Nevis

  • Montserrat

DCash enables instant cross-border payments, making it a game changer for intra-CARICOM trade.

3. Jamaica – JAM-DEX

Jamaica’s digital currency (JAM-DEX) is integrated with banks and mobile wallets to promote financial inclusion. Its rollout in 2023 aims to support microbusinesses and the informal economy—major players in regional trade.

Trade Use Cases for Blockchain in CARICOM

Blockchain isn’t just about currency—it’s transforming every stage of the supply chain. Here's how it's improving trade operations:

1. Cross-Border Settlements

Traditional payment systems are slow and expensive. Blockchain platforms allow instant settlement between businesses in, for example, Barbados and Trinidad, without converting funds or relying on correspondent banks.

2. Smart Contracts

Digital agreements that automatically execute terms (like payment upon delivery) reduce disputes and ensure trust across borders.

3. Trade Documentation

Blockchain-based systems can store:

  • Bills of lading

  • Certificates of origin

  • Customs declarations

Digitizing these documents slashes costs and removes bottlenecks in trade facilitation.

4. Supply Chain Transparency

By tracking products from farm to port using blockchain, countries like Guyana (agriculture) or Suriname (timber) can offer certified exports that meet international compliance standards—boosting value and market access.

Impact on Exporters and Importers in CARICOM

Let’s explore how blockchain and CBDCs are changing the game for regional trade actors.

Exporting Nations:

  • Trinidad & Tobago: Oil, gas, and manufactured goods companies can now receive faster payments via DCash or stablecoins—cutting remittance times from days to seconds.

  • Guyana: Farmers using blockchain traceability tools can secure premium pricing for verified organic or fair-trade goods.

  • Barbados: Software and financial services exporters can bypass USD intermediaries, reducing transaction fees significantly.

Import-Heavy Nations:

  • Antigua & Barbuda: Retailers importing food and tech can now pay with DCash, avoiding costly FX conversions.

  • Grenada: Blockchain makes customs processes more efficient, reducing port delays and saving time.

  • Haiti & Belize: Local businesses benefit from simplified access to regional suppliers, improving competitiveness and consumer choice.

Key CARICOM Projects and Collaborations

Several initiatives are bridging blockchain technology with regional integration goals:

  • CARICOM’s Single ICT Space: Designed to harmonize digital regulations and enable smooth cross-border tech flows.

  • OECS Blockchain Council: Supports the safe adoption of blockchain across economic sectors.

  • Caribbean Blockchain Alliance (CBA): A regional network advocating for blockchain education, standards, and policy reforms.

Private Sector & Startup Contributions

Caribbean startups and companies are building blockchain-powered trade tools, including:

  • Bitt Inc. (Barbados): Creator of DCash and a leader in CBDC infrastructure globally.

  • Caricoin (Jamaica): A mobile wallet app connecting unbanked users with blockchain-powered payment tools.

  • OuroX (Bahamas): A digital asset exchange promoting tokenized commodities trading within the Caribbean.

Challenges to Adoption

While the potential is massive, several obstacles remain:

  • Digital literacy: Many MSMEs lack knowledge of blockchain benefits.

  • Connectivity gaps: Rural areas in Haiti or Dominica may lack consistent internet access.

  • Regulatory fragmentation: Different rules across CARICOM countries slow down cross-border rollout.

  • Cybersecurity: As with any tech infrastructure, data protection and fraud prevention are critical.

Recommendations to Scale Blockchain in Trade

To fully realize the benefits, CARICOM must:

  1. Harmonize regulatory frameworks for digital currencies and crypto-assets.

  2. Invest in digital infrastructure, especially in underserved areas.

  3. Provide education and training for MSMEs, exporters, and customs agents.

  4. Foster public-private partnerships to develop interoperable systems.

  5. Create trade incentives for companies using certified blockchain traceability systems.

A Vision for the Future

Imagine a near future where:

  • A coconut exporter in Saint Lucia receives same-day payment from a retailer in Jamaica via JAM-DEX.

  • An agri-tech company in Suriname secures a logistics contract with a Trinidadian wholesaler through a blockchain-based procurement platform.

  • Customs in Belize and Grenada share real-time shipping data through a secure blockchain ledger—reducing clearance times by 70%.

This is not far-fetched—it’s in motion.

Conclusion

Blockchain and digital currencies are laying the foundation for a faster, more transparent, and cost-efficient CARICOM trade environment. The Caribbean’s willingness to innovate puts it ahead of many regions in fintech adoption. By embracing these technologies, CARICOM can eliminate long-standing barriers to intra-regional trade and build a more connected, competitive economic future.

Now is the time to scale these tools region-wide, and unlock the full potential of the Caribbean as a smart trade powerhouse.