Exploring the use of digital currencies as a form of payment in Barbados

Abstract

What has been accepted as payment has changed over time, and so have the ways in which payments are made. Coins made of precious metals were one of the first methods used for making payments in a number of economies. This eventually evolved to the use of receipts for gold housed with goldsmiths, which then developed into banknotes whose value depends not on gold but on the economic and financial position of the country. Next in the evolution of payment methods is digital currency, which is considered by many to have the potential to disrupt and transform the existing global financial infrastructure. The aim of this paper is to examine the potential for introducing digital currency as a form of payment in the Barbadian economy. Data were collected using a structured questionnaire that was administered to 50 participants between July and September 2015. The questionnaire covered participants’ awareness and perception of digital currency, as well as the frequency with which they utilise those services (money transfer/remittance and online shopping) that would derive significant benefits from its introduction. The findings revealed that most respondents became aware of the concept of digital currency in 2014, with only a few persons recognising digital currencies other than bitcoin. Generally there was limited knowledge among Barbadians about digital currencies and although most had heard of it, few had more than a beginner’s level of knowledge on the subject. Despite this finding, many expressed a willingness to use it if certain conditions could be met.