{"id":11739,"date":"2013-04-03T09:07:59","date_gmt":"2013-04-03T14:07:59","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=11739"},"modified":"2014-02-12T08:52:08","modified_gmt":"2014-02-12T13:52:08","slug":"bitcoins-solve-e-payment-challenges-caribbean","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2013\/04\/bitcoins-solve-e-payment-challenges-caribbean\/","title":{"rendered":"Can Bitcoins solve the e-payment challenges in the Caribbean?"},"content":{"rendered":"

The Bitcoin\u00a0has been around for a few years, but until last month very few of us had heard about it. This post outlines what the Bitcoin is, and discusses whether it could solve the e-payment challenges that exist in the Caribbean.<\/em><\/p>\n

\"Bitcoin<\/a>It is no secret that there is considerable\u00a0difficulty in processing transactions and payments over the Internet in most Caribbean countries (see our post, Has e-commerce stalled in the Caribbean?<\/a><\/strong><\/em>). For the few local vendors who might have the requisite facility to do so, securing it would have been an onerous and expensive process, which has limited take-up and adoption across all sectors. More importantly, online sales are almost exclusively outbound \u2013 from the Caribbean to more developed markets, such as the United States, Canada and the United Kingdom \u2013 with virtually none occurring in the reversed direction.<\/p>\n

Over the past two weeks, the \u201cBitcoin\u201d has been gaining mainstream attention. Demand for it has escalated considerably, which experts have suggested has been due to the financial crisis in Cyprus. In a nutshell, the financial sector in Cyprus has collapsed and the country has been trying to secure a EUR\u00a010 million bailout from the European Union and the International Monetary Fund. In order to\u00a0get the funds, the Cypriot government will (reportedly) be\u00a0seizing up to 60% of uninsured deposits to try to stabilise the economy, which in turn has resulted in considerable\u00a0loss of confidence in the country\u2019s banking and financial sectors. Moreover, it has also put a spotlight on the Bitcoin, which it has been suggested,\u00a0offers an alternative to the traditional banking sector, and could offer solutions to Cyprus and its citizens. However, what is the Bitcoin, and could it offer the Caribbean a viable means of facilitating online payments?<\/p>\n

The Bitcoin 101<\/h3>\n

Launched in 2009, Bitcoin\u00a0(BTC) is a digital currency that has no central management authority, and uses instead peer-to-peer technology to issue Bitcoins\u00a0and manage transactions. Although some vendors have created and issued Bitcoin notes and coins, its true value exists electronically, where:<\/p>\n

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  • there is no centralised control, such as a central bank, unlike traditional currencies<\/li>\n
  • the currency\u2019s value is based on demand and supply, similar to a stock market<\/li>\n
  • individuals directly control their currency holdings and their transactions, with minimal external intervention<\/li>\n
  • Bitcoin\u00a0accounts and transactions are private, which means that governments would have limited information on and control over a person\u2019s Bitcoins \u201cstash\u201d.<\/li>\n<\/ul>\n