Curaçao CBDC Tracker

Curaçao is in the research phase. The Centrale Bank van Curaçao en Sint Maarten officially stated that it is “exploring the potential benefits and risks” of CBDCs. However, as it stands, “there are no compelling reasons to introduce a CBDC.”

CBDC History and Development

In 2018, the company Bitt announced that it had signed an agreement with the Centrale Bank van Curaçao en Sint Maarten. The agreement stated that Bitt would work with the central bank to “explore the feasibility of the CBCS issuing a digital Curaçao and Sint Maarten Guilder.” Centrale Bank van Curaçao en Sint Maarten acting president Leila Matroos-Lasten said, “The central bank is determined to address its challenges proactively by exploring the latest technology available, for example, to reduce the level of cash usage within the monetary union, and to facilitate more secure, more AML and KYC compliant, and more efficient financial transactions within and between Curaçao and Sint Maarten.”

The Centrale Bank van Curaçao en Sint Maarten later published a frequently asked questions page specifically for CBDCs. The page notes that the central bank is “exploring the potential benefits and risks” of CBDCs. Furthermore, the central bank is “monitoring the developments in CBDC closely and analyzing the possible effects of a digital Caribbean guilder for Curaçao and Sint Maarten.” Before deciding whether to issue a CBDC, the central bank plans to conduct a feasibility study and consult with stakeholders. As it stands, “there are no compelling reasons to introduce a CBDC, but the CBCS does not exclude an introduction in the future.”

The frequently asked questions page also addressed whether a CBDC would replace cash. The central bank stressed that a CBDC would “not to reduce or replace physical currency.” It added that “central banks around the world indicated that CBDC will complement or coexist with existing payment methods (including cash), not replace them.” Both statements are misleading. First, Centrale Bank van Curaçao and Sint Maarten acting president Leila Matroos-Lasten said in 2018 that the central bank was interested in CBDCs because it was “exploring the latest technology available, for example, to reduce the level of cash usage.” Second, many central banks have said their goal is to go cashless and that CBDCs are a way to get there.

In 2023, the Curaçao Chronicle reported that Centrale Bank van Curaçao en Sint Maarten president Richard Doornbosch said CBDCs should be approached with caution. He stressed the need to thoroughly assess the risk before moving forward.

Human Rights and Civil Liberties Concerns

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.