Bitt, a portfolio firm of Overstock’s blockchain firm Medici, has partnered with the Eastern Caribbean Central Bank (ECCB) to pilot central bank digital currency (CBDC). Overstock announced the news in a press release on March 6.

Barbados-based Bitt initially signed a contract with ECCB to conduct a pilot of the blockchain-issued Digital Eastern Caribbean Dollar (DXCD) on Feb. 21. The digital currency will be used within the Eastern Caribbean Currency Union (ECCU), and is set to be distributed by licensed financial institutions and non-bank financial institutions in the ECCU.

DXCD intends to facilitate peer-to-peer (P2P) transactions between merchants and consumers through smart devices, enabling transfers across the ECCU. The blockchain pilot aims to promote greater stability in the financial sector, reduce cash usage in the ECCU and foster economic growth in the Caribbean.

Jonathan Johnson, president of Medici Ventures, said that Bitt’s integration with the Eastern Caribbean Central Bank will help advance blockchain technology. He claimed that Bitt’s technology significantly improves payments industry by using blockchain to provide banking options to countries with large “unbanked” populations.

ECCB first signed a Memorandum of Understanding (MoU) with Bitt in March 2018 to use blockchain tech for data management, ensuring compliance, and monitoring transactions.

Founded in 2014, Medici Ventures is a fully-owned blockchain subsidiary of retail giant Overstock. Recently, major investors in Overstock’s crypto subsidiary tZERO reduced their upcoming investment from $404 million to $100 million.

On March 1, the Central Bank of the Bahamas announced its key development partners for creating a digital fiat currency system in the island country. The Bahamas’ “Project Sand Dollar” aims to provide equal access to digital payments capabilities, reduce cash transactions and service delivery costs.