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Finance and Management
Reference:

East Caribbean Dollar (1949-2023): From Private Bank Notes to Digital Currency

Gonta Semen Nikolaevich

Student; Department of Theory of Law and State, History and Philosophy; Sochi State University

354000, Russia, Krasnodar Territory, Sochi, ul. Plastunskaya, 94

rudolf.diesel.bmw@gmail.com
Other publications by this author
 

 
Potashova Irina Yurievna

PhD in Economics

Associate Professor, Department of Innovative Technologies in Economics and Management, Sochi State University

354000, Russia, Krasnodar Territory, Sochi, ul. Plastunskaya, 94

potashova@mail.ru

DOI:

10.25136/2409-7802.2024.1.69448

EDN:

ZXSRTE

Received:

26-12-2023


Published:

02-04-2024


Abstract: The article is devoted to the study of exotic currencies, namely the history of the development and formation of the dollar of the East Caribbean Islands. The object of study in this article is the East Caribbean dollar. The subject of this article is the main historical stages of the cash circulation of the East Caribbean dollar. In this article, the authors highlight and analyze the main historical stages of the functioning of currency: from private bank notes of the British Caribbean territories to the modern stage of currency development, at which the process of transition to digital currency has already begun. The bibliographic base of the article is represented by current research on the topic of work, official data from the Eastern Caribbean Central Bank, as well as the online resource CBDC Tracker. The research methodology is based on general scientific methods: classification method, analysis, synthesis, induction and deduction (abstract logical method). Also, due to the historical context of the work, historical research methods are additionally used: historical-genetic and narrative methods. The scientific novelty of this article lies in the detailed study and analysis of the main stages in the history of the development of the East Caribbean dollar, namely: the dollar of the British Caribbean Territories (1949-1965), the dollar of the Eastern Caribbean Islands before the founding of a common central bank (1965-1983) and the dollar of Eastern Caribbean Islands today (1983-2023). In conclusion, the authors define the role of the East Caribbean dollar in the economies of the countries that use it and draw a conclusion about the colonial genesis of this currency. It is noted that the first experience of launching a digital version of the East Caribbean dollar was controversial.


Keywords:

Eastern Caribbean Islands, British colonies, monetary union, East Caribbean dollar, cash circulation, banknotes, digital currencies, CBDC, currency board, offshore jurisdictions

This article is automatically translated.

Introduction

The relevance of the study lies in the fact that today there is a tendency in the world to digitalize such a conservative form of the economy as cash. Currently, most countries of the world have already begun the process of gradual transition to the digital form of currency, as evidenced by the active development of the so-called "CBDC" (Digital currencies of central banks) and, in the case of particularly "progressive" countries, restrictions on the use of cash.

In this regard, in this article, the authors consider the history of the development of the Eastern Caribbean dollar, a currency whose history dates back to the middle of the 20th century and is circulated in 8 island microstates of the Caribbean region thanks to the monetary union, and its digital version can be considered one of the pioneers in the development of digital currencies of central banknotes (Central bank digital currency).  

The purpose of the study is to review and analyze the history of the development of the Eastern Caribbean dollar in the period from 1950 to 2023.

This work is an attempt by the authors to summarize the historical aspects of cash circulation in the island states of the Eastern Caribbean region, from the British colonies of the mid-20th century to the present day.

Materials and methods of research

In this work, the authors use general scientific research methods: classification method, analysis, synthesis, induction and deduction (abstract logical method). Additionally, the authors use special historical research methods: historical-genetic and narrative methods. 

The bibliographic database of the article consists of relevant works on the research topic. Statistical data are provided by the official currency regulator of the Eastern Caribbean Islands - East Caribbean Central Bank. Other materials are provided by the CBDC Tracker resource, as well as official UN and IMF data.

Discussion

Currently, there is practically no research in the domestic scientific community on the Eastern Caribbean Monetary Union and its single currency. Among these, only the works of G. L. Shagalov can be distinguished, which analyze the economic nature of the Caribbean monetary union [1], as well as its functioning and development in recent years [2].

However, in the English-speaking scientific community, much more research has been devoted to the Eastern Caribbean Monetary Union. Here we highlight the works of the following authors: Xiaodan Zhao and Yunbai Kim [3], Alberto Alesina and Robert Barro [4, 5], Samuel Wendell and Lennox Andrews [6], Simons Walter and Raj Aggarwal [7], as well as an international group of authors [8].

Also, since this work examines the functioning of the digital currency of the Eastern Caribbean Monetary Union, it is worth noting the works devoted to this topic. In the Russian scientific community, only one work is devoted to this issue: T. V. Andreeva and A. B. Berker [9]. In turn, from English-language publications on the topic of the digital Caribbean dollar and digital currencies, we will highlight the works of the following authors: the report of the UN South American consultant Shiva Bissessar [10], the working report of the group of economists of the research department of the Central Bank of Trinidad and Tobago [11], the article by the economist of the Central Bank of Nigeria Peterson Ozili [12], the working report of Inutu Lukonga (IMF) [13], as well as the final report of the seminar on the digital currency of the Eastern Caribbean Central Bank [14].

The results of the study

The dollar of the British Caribbean Territories (1949-1965). The prehistory of the modern Eastern Caribbean dollar began long before the immediate introduction of this currency. The specifics of the region, as well as the colonial relations that have developed here, have largely influenced the formation and emergence of a common currency of island states in the eastern Caribbean region.

It is worth starting consideration with the dollar of the British Caribbean Territories (The British Caribbean Territories Dollar), since it can be called the first full-fledged currency of island states in this region. The circulation of the British West Indies dollar took place in the period from 1935 to 1965. At the first stage of its existence, the British West Indies dollar did not have its own physical appearance and represented the tickets of private banks (Barclays Bank, Royal Bank of Canada, Canadian Bank of Commerce) and the colonial government.

The geography of the distribution of the British West Indies dollar: Barbados, Trinidad and Tobago, Jamaica, British Guiana, British Windward Islands (Grenada, Saint Lucia, Saint Vincent and the Grenadines, Dominica) and British Leeward Islands (Saint Kitts and Nevis, Antigua and Barbuda, Virgin Islands, Anguilla, Montserrat).

In the second stage of its existence (1949-1965), the British West Indies dollar acquired its new physical form in the form of banknotes. In 1949, the British government formalized the system of dollars in the accounts of all the above-mentioned Territories by introducing a monetary unit at the existing conversion rate of 4.8 West Indian dollars per 1 pound sterling. 1 West Indian dollar contained 100 cents. Until 1955, the British West Indies dollar existed exclusively in banknote format and only later were coins issued [15].

In 1950, the first series of new banknotes were printed. The line of new banknotes consisted of 6 denominations ($1, $2, $5, $10, $20, $100). The style of the banknotes was restrained, the images were the same on all denominations and differed only in the color of the seal. Also on all banknotes there was a portrait of the head of state – King George VI of Great Britain.

It is also worth noting here that the direct printing of banknotes was carried out by the private company Bradbury, Wilkinson & Co. Ltd (New Malden)" in the UK (at that time, this company was actively engaged in the production of printed products for almost all colonies and dependent territories of Great Britain) [16]

The monetary authority for the new currency was the British Caribbean Monetary Authority ("British Caribbean Currency Board"). This monetary authority was created to maintain a stable exchange rate of the currency, representing the "classic" colonial "Currency Board" system, with such a monetary policy, the exchange rate of a certain country's currency is legislatively fixed to the anchor currency of another state (in this case, the British West Indies dollar was pegged to the British pound) [17].

In turn, the Monetary Council, as a body of monetary authorities, is "an institution issuing banknotes and coins, which, upon presentation on demand, are freely converted at a fixed exchange rate into a foreign currency or other external reserve asset" [18, p. 276].

In the early 1960s, British Guiana, as well as Trinidad and Tobago gained independence from Great Britain, which was immediately followed by the withdrawal of these states from the Caribbean monetary union. Their departure provoked the actual collapse of the British Caribbean Monetary Authority, since they were the largest states in the monetary union and their exit deprived the West Indian dollar of support in the region [19].

Thus, in 1964, the currency agreements between the countries were terminated, and the British Caribbean Monetary Authority was liquidated [20].

The dollar of the Eastern Caribbean Islands before the founding of the common central bank (1965-1983). In 1965, the Eastern Caribbean Monetary Authority ("East Caribbean Currency Authority") was established, an organization that, according to its principles of operation and purpose, repeated its predecessor, but its activities now extended to the island territories remaining in the monetary union.

And already on October 6, 1965, an updated currency was introduced into circulation – the Eastern Caribbean dollar. The exchange of old banknotes for new ones was carried out in a ratio of 1 to 1, since the parity rate of the new currency was also 4.8 Eastern Caribbean dollars per 1 pound sterling [21, p. 88].

The new banknotes retained the Caribbean-island style in their design and were presented in 4 denominations ($1, $ 5, $ 20 and $100). All denominations had a single image of the obverse and reverse and differed only in color, as well as a portrait of the formal head of state, Queen Elizabeth II, was placed on all banknotes. The direct printing of banknotes was carried out by the private company Thomas De La Rue & Company Ltd in the UK.

In 1976, the monetary authorities decided to link the Eastern Caribbean dollar to the US dollar. The exchange rate was 2.7 Eastern Caribbean dollars per 1 US dollar (such a solid currency ratio remains to this day). This fact is explained by some reasons, the main of which is the loss of the dominance of the pound sterling in world trade and international settlements, with the parallel capture of the dollar of the world economy at that time.

The Caribbean island states, being geographically remote from the former metropolis, interacted mainly with countries that used the US dollar in one way or another, and therefore the conversion of the national currency to the American dollar was more logical. In addition, it was at that time that the rapid development of offshore business began, which spurred the need for the US dollar as an international reserve currency [22].

It is worth noting here that other British Overseas Territories (Turks and Caicos, Pitcairn, British Virgin Islands, Cayman Islands and Bermuda) did the same [23].  

In the period of the 70s and 80s, there was a gradual development of the economies of island states using the Eastern Caribbean dollar. The amount of money in circulation has increased almost 6 times since 1970 by 1986. There was also an increase in the foreign exchange reserves of Karensi Board, from 5.3 million US dollars in 1970 to 17.8 million US dollars in 1986 (see table 1).

Table 1. Data on the money supply in circulation and foreign exchange reserves.

Year

1970

1975

1980

1984

1985

1986

Money supply in circulation (in Eastern Caribbean dollars)

10.87 million

19.38 million

53.47 million

50.71 million.

54.12 million

65.2 million

Banknotes and coins

6.09 million

12.65 million

32.58 million

20.58 million

25.07 million

26.1 million

Current accounts

4.72 million

6.73 million

20.89 million

20.19 million.

29.05 million

39.1 million

The organization's foreign exchange reserves (in US dollars)

5.32 million

5.04 million

12.91 million

14.23 million

20.81 million

17.8 million

Source: compiled by the authors based on [21].

Thus, actively developing after its re-creation in 1965, the Eastern Caribbean Monetary Union came to another important milestone in its history – the creation of a common central bank in 1983.

The dollar of the Eastern Caribbean Islands in our days (1983-2023). On July 5, 1983, an agreement was signed on the establishment of a single central bank between the island States. And on October 1, 1983, the Eastern Caribbean Central Bank ("East Caribbean Central Bank") was officially established. The purpose of the creation of a common central bank was to ensure the stability of the Eastern Caribbean dollar, to bring the banking sector into integrity in all member States of the union, as well as to promote their balanced economic growth and development.

During the transition to the central bank, the functions of the monetary authorities expanded, based on this, it can be argued that although the Currency board system remained, it began to have a modified character (the so-called modified currency board), now having some differences with the "classic" currency board [24]

Also, during the transition to the central bank, the appearance of banknotes was updated. In 1985, a new series of banknotes was issued, which included denominations of $ 1, $5, $10, $20 and $100.

Thus, the common central bank allowed the Eastern Caribbean island states to move to a new stage of their development, moving away from the colonial past, and also gradually begin to integrate into the global economy.

As I. N. Rudenkov notes: "From the very beginning of its existence, ECCB primarily relied on three main monetary policy instruments: reserve requirements, discount rate and minimum savings rate. The percentage of mandatory reserves (the ratio of reserves of federal reserve banks to the amount of deposits and banknotes issued) is 6% of the average deposits and has not changed since its inception in 1984.

However, administrative measures regarding mandatory reserves were changed in 1994, when the reserve period was extended to four weeks (previously it was one week). This regime remains in force to this day.

A similar situation has developed with the discount rate, which was reduced from 10.0% to 9.0% in 1993 and did not change during the period under review" [25, p. 29].

In the period from 1993 to 2012, a new series of banknotes was in cash circulation, which thematically differed from all previous ones (each banknote had its own unique reverse design), and there was also an improvement in protective characteristics.

In addition, the nominal value of $ 1 was excluded in the new series, since over time inflation practically devalued this denomination and its further use was impractical. And in large denominations, on the contrary, there was an update and a new $ 50 banknote appeared, which balanced the line of banknotes.

In this form, cash circulation lasted until 2019, when new banknotes were issued into cash circulation, which were printed on a new material – a polymer substrate.

The trend to issue money from plastic has emerged in the world relatively recently. To date, countries such as Canada, Australia, Great Britain, etc. have completely switched to plastic banknotes. Also, the trend has been picked up by small regional states, especially in hot and tropical climates, since plastic banknotes are less exposed to temperatures, and their service life significantly exceeds their paper counterpart. In the Caribbean, Trinidad and Tobago, the Eastern Caribbean Islands and Barbados have already switched to plastic banknotes. Thus, at the end of this section, we can note the key events that took place at each stage of the development of the Eastern Caribbean dollar (see table 2)

Table 2. The main stages of the development of the Eastern Caribbean dollar.

Stage I (1949-1965)

Stage II (1965-1983)

Phase III (1983-2023)

The transition from private bank notes to their own colonial currency.

The transition from a purely colonial currency to a more independent form.

Establishment of a single central bank for the member countries of the Monetary Council.

The issue of the first banknotes.

Setting a fixed exchange rate against the US dollar.

The transition of cash banknotes to new materials – a polymer substrate.

Registration of your own regional currency.

The development of the economies of the member countries of the monetary union and the increase in the corresponding monetary indicators (growth of the money supply in circulation and foreign exchange reserves).

Development and launch of the central bank's own digital currency, DCash.

Source: compiled by the authors.

The Eastern Caribbean Monetary Union ensures the stability of the common currency and the systematic economic development of the Caribbean Island States. However, difficulties are also present in his work, since "the Eastern Caribbean Monetary Union, according to many experts, is a kind of miniature of the problems faced by the European Union (in the area of growing fiscal deficits, lack of financial integration, problems with external debt and in the financial sector)" [2].

Currently, the economies of the Eastern Caribbean Islands differ little from each other and represent typical island microstates, where the main sectors of the economy are inbound tourism, the provision of various offshore services, as well as the export of exotic agricultural products. Such countries are critically dependent on the receipt of foreign currency (primarily the US dollar), therefore they resort to various methods of attracting foreign capital (for example, numerous "passport for investment" programs) [26].

The Eastern Caribbean "Dcash" and the experience of other digital currencies of central banks.

Modern trends towards the total digitalization of the economy have not bypassed the Eastern Caribbean Monetary Union and its currency. In 2017, the Eastern Caribbean Central Bank announced the development of its digital currency and, according to CBDC Tracker, currently continues to be at the pilot project stage [27]. In April 2021, the Caribbean digital currency "DCash" was launched, but did not achieve significant success and was even disabled for 2 months for technical reasons [28]. A comparative analysis of the possibilities provided by the project, the digital ruble and the Caribbean "DCash" is presented in Table 3.

Table 3. Comparison of the capabilities of the digital ruble and DCash.

The possibilities of digital currency

The digital ruble of the Bank of Russia

Eastern Caribbean "DCash"

The possibility of cross-border settlements.

Yes (the possibility is provided by the project).

Yes (implemented between the island states of the monetary union).

Purchase of goods and services on the domestic and foreign markets.

Yes (the ability to pay for goods and services anywhere that accepts digital currency).

Yes (the ability to pay for goods and services anywhere that accepts digital currency).

Instant settlements between counterparties in digital currency.

Yes.

Yes.

The ability to pay in offline format (without the need for an Internet connection).

Yes (the possibility is provided by the project).

Formally, there is, but in fact the offline infrastructure has also encountered infrastructural difficulties.

The possibility of free currency conversion in both directions.

Yes.

Yes.

Source: compiled by the authors.

Analyzing the experience of the digital Caribbean dollar, it is worth noting that it turned out to be quite successful, although it had certain difficulties. The main problem with the functioning of the Caribbean digital dollar was related to a technical glitch that occurred in 2021, due to which the entire payment infrastructure was disabled. This case shows the particular importance of the infrastructural stability of digital currencies, since in case of its violation, the entire payment infrastructure can be disabled.

One of the solutions to this problem is to implement the ability of the infrastructure to work offline. This possibility is particularly relevant in the Caribbean region, which is often subject to weather crises. However, the experience of the Bahamas in testing the inclusion of autonomous operation showed "that the planned solution for local redundancy of the main communication system was as vulnerable to weather conditions as the main communication system" [29]. Also, the experience of the Bahamian "Sand Dollar" showed low public involvement in the use of digital currency, because two years after the official launch, "in July 2022, Sand Dollar had in circulation an electronic currency worth only about 300,000 dollars and 30,000 digital wallets, and about 845 enterprises accepted it" [28]. And currently, the Government of the Bahamas will continue to make regular efforts to promote it.

This trend is also observed with other digital currencies of central banks (with the exception of the Chinese digital yuan). Perhaps the most striking example is Nigeria and its digital currency "eNaira". The Nigerian population, due to the permanent economic crisis, is the most crypto-savvy population in Africa. As noted in the report of the KuCoin crypto exchange, about 35% of Nigerians aged 18 to 60 years either own or traded cryptocurrency assets in 2022.  Against this background, the government of the country began to introduce prohibitive measures against cryptocurrencies (prohibiting financial organizations from conducting transactions with crypto exchanges), at the same time introducing its official digital currency. However, the official digital currency of Nigeria turned out to be completely unclaimed, only 0.5% of the country's population used "eNaira" [30].

"After such a failure, the state began to popularize the digital naira by means of coercion – on December 6, 2022, the Central Bank of Nigeria issued a directive for financial organizations, which introduced a limit on cash withdrawals from ATMs for individuals and legal entities (100 thousand naira and 500 thousand naira, respectively)" [31].

Based on this, the central bank of the Russian Federation should take a responsible approach to the implementation of the digital ruble project, taking into account the successful and, first of all, unsuccessful experience of already launched digital currency projects. Also, special attention should be paid to the possibility of cross-border settlements using digital currencies. And if the unification of the payment infrastructure of the islands is relevant for the Caribbean digital dollar, then in modern Russian sanctions realities, this means the possibility of excluding various options for political pressure using instruments to limit international economic settlements and block assets, primarily from the countries of the collective West [32].

Conclusion

Thus, it can be concluded that the Eastern Caribbean dollar is a regional currency that circulates within eight island microstates. Analyzing the history of the development of monetary circulation in this region, we can conclude about the rich experience of using the colonial currency supply system. At the same time, at its core, the dollar of the Eastern Caribbean Islands remains a classic colonial currency that uses a fixed exchange rate system (Currency board) in relation to an external reserve asset (US dollar). It is worth noting that such a system makes it possible to ensure the stability of the value of the currency, as well as to have low inflation, especially given the economic specifics of the region and its dependence on foreign exchange earnings from outside. Also, it is worth noting the experience of the functioning of the digital analogue of the currency of the Caribbean islands, which, at this stage, is of a mixed nature. At the same time, it still retains a further development perspective, primarily due to the geographical and economic characteristics of the countries of the region.

Analyzing the experience of the Caribbean digital dollar, as well as other digital currencies of central banks, will allow the Russian digital ruble to avoid the difficulties and mistakes that pilot projects of digital currencies around the world have already encountered.

References
1. Shagalov, G. L. & Zoidov, Z. K. (2016). Economic nature of the Eastern Caribbean Currency Union. 25 years of the CIS: main results, problems, development prospects: Materials of the international scientific and practical conference. Moscow: Central Economics and Mathematics Institute of the Russian Academy of Sciences.
2. Shagalov, G. L. (2016). Currency unions of the 21st century. Economics and management, 11(133), 77-83.
3. Zhao, X. & Kim, Y. (2014). Is The Eastern Caribbean Currency Union an Optimum Currency Area? The Journal of Developing Areas, 48, 291-313. doi:10.1353/jda.2014.0009
4. Alesina, A. & Barro, R. J. (2001). Dollarization. The American Economic Review, 91(2), 381-385.
5. Alesina, A. & Barro, R. J. (2002). Currency Unions. The Quarterly Journal of Economics, 117(2), 409-436.
6. Samuel, W. A. & Andrews, L. (2001). Exchange Rate Management in the Eastern Caribbean Currency Union. Social and Economic Studies, 50(3/4), 233-257.
7. Simmons, W. & Aggarwal, R. (2005). Purchasing Power Parity in the Eastern Caribbean Currency Union. The Journal of Developing Areas, 38(2), 155-169.
8. Williams, O., Polius, T., & Hazel, S. (2005). Reserve Pooling in the Eastern Caribbean Currency Union and the CFA Franc Zone: A Comparative Analysis. Savings and Development, 29(1), 39-60.
9. Andreeva, T. V. & Berker A. B. (2020). Eastern Caribbean Monetary Union and the launch of a digital banking currency. World financial systems: problems and development prospects: Collection of scientific articles by students based on the results of the VI International Forum of the Financial University and Faculty of International Economic Relations, Moscow: Scientific Technologies, 285-288.
10. Bissessar, S. (2016). Opportunities and risks associated with the advent of digital currency in the Caribbean. Studies and Perspectives – ECLAC Subregional Headquarters for The Caribbean, 46. Santiago: United Nation Publication.
11. Finch, K., Garcia-Singh, C., & Duke, K. (2021). Caribbean Currency Convertibility in an Era of Central Bank Digital Currency. Working Papers of the Central Bank of Trinidad and Tobago.
12. Ozili, P. K. (2023). Determinants of global interest in central bank digital currency: The role of sustainable development and cryptocurrency. Digital Transformation and Society. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/DTS-04-2023-0020/full/html
13. Lukonga, I. (2023). Monetary Policy Implications of Central Bank Digital Currencies: Perspectives on Jurisdictions with Conventional and Islamic Banking Systems. IMF Working Papers, Vol. (060)-A001.
14. CBDC Innovation in the Caribbean [Electronic resource]. The Caribbean Central Bank Digital Currency Workshop Summary Report. Retrieved from https://d1.awsstatic.com/institute/CBDC-Innovation-in-the-Caribbean.pdf
15. East Caribbean dollar [Electronic resource]. Global Exchange. Retrieved from https://www.globalexchange.hk/en/currencies-of-the-world/east-Caribbean-dollar
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First Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The subject of the study. The article, based on the title, should be devoted to the history of the Eastern Caribbean dollar (1949-2023): from private bank notes to digital currency. The content of the article generally corresponds to the stated topic, but individual fragments require revision (as discussed below). The research methodology is based on the use of historical analysis tools and chronological presentation of the material. It is valuable that despite the historical specifics of the article, the author has built a table, which increases the level of positive perception formed as a result of familiarization with the article. It is recommended to quantify the issues related to the introduction of the digital ruble when finalizing the article. The relevance of the study of issues related to the organization of monetary policy and the implementation of currency regulation is beyond doubt, especially in the context of the emergence of the digital ruble. These questions are also interesting from a historical point of view. It would be interesting for the author to present a comparative table of stages indicating the key innovations at each stage. The scientific novelty in the research submitted for review may be related to the author's approach to the study of currency regulation issues. The author is recommended to strengthen the author's recommendations for solving the identified problems, which would be in great demand from a potential readership. Style, structure, content. The style of presentation is scientific, but in the text the author uses the word "possible", which is not acceptable for scientific research. The structure of the article is built by the author, but it would be interesting to present the modern version of the introduction of the digital dollar in a separate paragraph. Familiarization with the content allows us to conclude that the author describes in detail the history of the development of the Eastern Caribbean dollar. It would be interesting to know the author's opinion on possible options for borrowing this experience into Russian practice, including in the context of modernizing the concept of the digital ruble. This will be of interest to a potential readership. Special attention should be paid to the fact that photographs of banknotes are not allowed. The bibliographic list includes 15 titles. At the same time, the author has not sufficiently studied the publications published in recent years. Given the specifics of the current stage of development of the digital Eastern Caribbean dollar, the author should pay special attention to scientific publications on this issue. Appeal to opponents. Despite the generated list of references, it was not possible to identify any scientific discussion in the text. The elimination of this remark will significantly enhance the level of scientific novelty and the depth of practical significance, increase the relevance of the article to a potential readership. Conclusions, the interest of the readership. Taking into account all the above, we conclude that the article has been prepared on a historical topic. If the article is supplemented with blocks of interest to the practical community, it will be of interest to a wide readership.

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The reviewed work is devoted to the study of the evolution of the Eastern Caribbean dollar from private bank notes to digital currency for the period from 1949 to 2023. The research methodology is based on the study and generalization of scientific publications on the topic under consideration, the use of both general scientific research methods (classification, analysis, synthesis, abstract-logical) and special research methods (historical, genetic and narrative), analysis of statistical data and materials of the United Nations and the IMF. The authors attribute the relevance of the work to the existence of a monetary union in the island microstates of the Caribbean region, which is why the digital version of the Eastern Caribbean dollar can be considered one of the pioneers in the development of digital currencies of central banknotes. The scientific novelty of the reviewed study consists in generalizing the historical aspects of cash circulation in the island states of the Eastern Caribbean region, concluding that the Eastern Caribbean dollar is a regional currency circulating within eight island microstates, remains a classic colonial currency that uses a fixed exchange rate system in relation to an external reserve asset - the dollar It takes into account the economic specifics of the region and its dependence on foreign exchange earnings from outside. The following sections are highlighted in the text of the article: Introduction, Materials and research methods, Discussion, Research results (in this section there are three subsections: the Dollar of the British Caribbean Territories (1949-1965), the Dollar of the Eastern Caribbean Islands before the founding of the common central bank (1965-1983), the Dollar of the Eastern Caribbean Islands today (1983-2023)), The Eastern Caribbean "Dcash" and the experience of other digital currencies of central banks, Conclusion, Bibliography. The article provides a brief overview of domestic and English-language studies on the Eastern Caribbean Monetary Union and its single currency, highlights the main stages of the development of the Eastern Caribbean dollar, examines the geography of its distribution, notes the role of the British Caribbean Monetary Authority in maintaining a stable exchange rate of the currency under study, traces the change in the activities of this organization. The authors provide data on the money supply of Eastern Caribbean dollars in circulation and foreign exchange reserves since 1970, and attempt to characterize the main stages of the development of this currency. The comparison of the capabilities of the digital ruble of the Bank of Russia and the Caribbean digital currency "DCash" deserves attention, it is noted that such a comparison is focused on anticipating the difficulties and errors that pilot projects of digital currencies around the world have already encountered. The bibliographic list includes 32 sources – scientific publications in Russian and English, as well as Internet resources on the topic under consideration, to which the text contains address links, which confirms the existence of an appeal to opponents. The reviewed material corresponds to the direction of the journal "Finance and Management", reflects the results of the work carried out by the authors, may arouse interest among readers, since it enriches modern ideas about the currency in question, and therefore is recommended for publication.