Trinidad and Tobago CBDC Tracker

Trinidad and Tobago is currently in the research phase. The Central Bank of Trinidad and Tobago first mentioned CBDCs in 2019. The central bank’s interest increased over the years and it signaled interest in running a pilot, but it stopped providing updates after 2022.

CBDC History and Development

In 2019, the Central Bank of Trinidad and Tobago mentioned CBDCs in its annual Financial Stability Report. However, the section on CBDCs was largely a summary of what other countries had done.

In the 2020 Financial Stability Report, CBDC development came up again. However, the central bank went further and wrote, “In 2019, monetary authorities took serious note of Facebook’s announcement of its stablecoin, formerly called the Libra, and began giving more active considerations to CBDC in order to preclude the adverse impacts on monetary and financial stability of private sector digital currencies.” For Trinidad and Tobago, the central bank “continues to be open [to creating a CBDC] but cautious and pragmatic in its approach.” Therefore, the central bank “conducted preliminary research into the feasibility of issuing a local CBDC and is furthering its due diligence study in 2021 with the assistance of the IMF.”

The 2021 Financial Stability Report examined CBDCs much more briefly. It described progress in other countries, but no update was given for Trinidad and Tobago. However, the central bank's broader annual report said, “The Central Bank held initial discussions with the Trinidad and Tobago International Financial Centre (TTIFC) to discuss the feasibility of establishing a CBDC. Further progress was made on the feasibility assessment when the Bank obtained technical assistance from the IMF on issues to be considered for establishing a CBDC.”

In February 2022, the Daily Express contacted the central bank to ask about citizens' concerns about restrictions on purchasing cryptocurrency. The central bank said there were no legal restrictions but stressed that cryptocurrency was risky. During the conversation, the central bank was also asked about the prospect of a CBDC. A spokesperson said, “The review of Central Bank Digital Currencies has been proceeding very well, facilitated by IMF technical assistance, including on technical aspects and country experiences. By mid-2022, we expect to be very close to a decision on a possible pilot.”

The 2022 Financial Stability Report did not mention CBDCs or the previously mentioned CBDC pilot.

CBDCs were briefly mentioned in the central bank’s 2023 annual report. However, it was only in the context of listing topics discussed at the G-24 meeting.

Human Rights and Civil Liberties Concerns

Trinidad and Tobago earned an 82 out of 100 in Freedom House’s 2024 Freedom in the World report. As Freedom House noted in the report, corruption is a significant issue for Trinidad and Tobago. The issuance or adoption of a CBDC in Trinidad and Tobago could worsen these issues.

According to Freedom House, “Corruption remains a pervasive problem, especially within the police force and among high-ranking government officials and immigration officers.” The existence of pervasive corruption is a major concern with CBDCs because it calls into question any promises that might be made by the government to limit surveillance, control, or other risks of CBDCs. Furthermore, the existence of corruption calls into question whether CBDC policies might be designed to exert political favoritism through subsidies, price controls, or other targeted restrictions.

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.