This presentation was delivered by Martin St-Hilaire, CPA, Chairman of the FCA, to the Revenue Committee set up by the Government of Vanuatu. He explored the idea of using blockchain technology to digitize the national currency, the Vatu, as a central bank-backed stablecoin. Here are some of the key benefits he highlighted:
Empowering consumers and small businesses through financial inclusion
- Digital money works everywhere without physical limitations. No need for a bank account = No need to go to the bank.
- Blockchain is an accessible, low-cost technology. Allows for inclusion of unbanked people who previously relied exclusively on cash.
- Blockchain records all transactions. Reliable information for lenders = Better access to financing for small businesses.
- Digital payments enable digital innovation. More digital products and services by and for Ni-Vanuatu > Even more financial inclusion.
Increasing government revenue through reliable, exhaustive data
- Every single transaction is stored in the blockchain. Decentralized Ledger Technology means transparence and trust.
- Transaction data is indestructible forever. Availability at all times for government agencies = enabling E-government.
- Digital payments include digital VAT. Automatic VAT collection and audits means more revenues AND lower costs.
- Digital tokens can’t get destroyed, hidden or stolen. Safer currency means easier AML/CTF/KYC compliance.
