The Eastern Caribbean Central Bank’s CBDC, DCash, is working once more after being inoperative for nearly two months. The bank posted an announcement updating citizens on the matter on March 9, saying that the malfunction was due to a ‘technical glitch.’
DCash back online
DCash was first launched in March 2021, allowing citizens to transfer money without requiring a bank account, and came with a bevy of other benefits. Seven of the eight countries under ECCB are using DCash, with Anguilla also set to join.
The digital currency went down in January 2022 and has been offline until the recent fix. This impacted its reputation, but it seems like everything is again running as intended, with full functionality now available. Several upgrades have also been implemented, including an enhanced certificate management process.
The downtime highlights the precarious nature of governments launching CBDCs and the challenges they will face. While they still want to seize upon the benefits of digitized currencies, they have to contend with potential risks. Consequently, some countries are taking it slow, not the least of which is the United States.
CBDCs inevitable, but challenges remain
The downtime of DCash is a reminder of the risks involved in the use of a CBDC. Many countries have announced their intentions to work on a CBDC, and those that have created one are carrying out extensive pilot programs.
The cost and time reduction benefits of CBDCs are readily apparent, but any technical issues could result in serious consequences. It is for this reason that the U.S. has said that it would prefer to get it right, rather than first.
The Boston Fed and MIT have been testing a CBDC, and the results have reportedly been promising so far. The recent executive order by Joe Biden also mentioned a CBDC, so it’s clear that the U.S. is fast-tracking the development.