Cryptocurrencies expanded worldwide recently, gaining more significance in countries like El Salvador, where Bitcoin became legal tender if you’re curious to know where to buy Bitcoin. The Dominican Republic also became interested in what cryptocurrencies and blockchain technology could bring to their economy, for which the DMC labs, Dominica’s metaverse organization, launched a project called the Dominica Metaverse Bound Token (DMBT).
DMBT is already part of the Dominica Metaverse Digital Citizenship (DMDC) that the Caribbean government approved. The lineup aims to offer digital ID citizenship to mint DMBT to coin holders. The project is on the Tron blockchain, a smart contract initially based on the Ethereum ERC-20 token. The technologies collaborate to attract talent in the island nation and develop high-tech programs.
But what does this bring to Dominica?
What is the Dominica Coin?
Dominica Coin (DMC) is a national token of Dominica launched with the help of Huobi and Tron. This is the first token authorized by a federal government in the world. DMC will provide the regular means of payment and path the way towards the metaverse. The coin’s base will be on the Tron blockchain based on the TRC 20 standard; this may help the country’s economy have better access to the metaverse world.
What is the Tron ecosystem?
The Tron network has the purpose of enhancing internet decentralization. The ecosystem uses the Truing virtual machine that delivers effective and scalable blockchain system features, and its technology uses ETC-20-compliant smart contracts. Tron helps with the following:
- Regular transactions;
- Safe token accounts;
- Coded contract accounts;
Tron is beneficial since it allows holding and staking coins, which will help holders develop their wallets and gain stable investments.
What is the purpose of the Dominica Metaverse Digital Citizenship?
The digital citizenship of Dominica will offer visa-free entry for anyone who wants to become a Dominica citizen. On top of that, holders of the DMC are eligible for airdrops of TRX, BTT OR DMC. The procedure for receiving DMDC is pretty straightforward: users need to download the Huobi app, which is the project’s collaborator and complete Level Three ID verification. The information required includes nationality, first and last name, date of birth and more. After the verification is approved, users can receive their Dominica citizenship documents.
Why did Dominica partner with TRON?
The Caribbean Island planned this collaboration in 2022 to promote tourism and cultural heritage. The blockchain infrastructure makes it possible for users to use the tokens as a means of exchange in the country, which makes it easier for tourists and people from all countries to exchange their coins for something that can be used in Dominica. The Prime Minister stated that he wanted to improve the economy of Dominica and include the island in the global economy.
Although Dominica is among the safest countries in the world and leverages plenty of natural wonders, its tourism rates can be improved. Since the pandemic, the number of yearly tourists has significantly dropped, but this has been the case since 2009 when social disparities and discrimination have increased. At the same time, the country’s pervasive corruption might’ve affected the tourism rate.
What is the crypto law in Dominica?
The Dominican Republic has offered multiple exchanges and ways for people to invest or trade in cryptocurrencies. Since there are no law restrictions or regulations regarding these matters, nor are there any tax legislation, citizens can legally invest in whatever coin they like. Now, tourists are encouraged to visit the Caribbean Island since they can use a preferred means of payment and transaction.
The Dominican is already packed with Bitcoin ATMs for anyone who needs a withdrawal. The interest in Bitcoin and digital coins became even stronger after the country’s scheme participation in a test to see how such a currency would establish alongside the Dominican’s national currency.
The project was unveiled under the Eastern Caribbean Central Bank (ECCB) and the fintech company of Barbados, Bitt, through which a digital version of the EC dollar would be used for transactions between clients and companies.
What is the Caribbean Crypto Summit?
In 2022, Dominica launched a project called the Caribbean Crypto Summit, gathering experts from around Latin America to discuss the development and promotion of digital coins and blockchain technology. The main subject was how Bitcoin helps Latin American and Caribbean entrepreneurs grow their businesses and startups to encourage students to open and own global or local companies to help the economy flirish.
On the other hand, some state that these educational events only attract new participants to the crypto market rather than providing the tools and knowledge to build a crypto-business-based career. Plus, given the crisis in the crypto market, some companies created aggressive marketing plans. These ideas have also been discussed to help entrepreneurs further make the difference between leveraging benefits and contributing to the development of the technology sector in Dominica.
How is Dominica’s economy evolving?
The Dominican Republic had tried to enhance economic growth and promote digital innovation with multiple strategies since the COVID-19 pandemic when the island was significantly affected economically speaking. Despite properly managing the crisis, Dominica faces plenty of challenges, from climate change vulnerability to income and wealth inequality.
However, many aspects of the Caribbean islands make it the perfect place to invest and visit. First, real estate investing will peak in 2023 due to good prices and land availability. Moreover, the location’s beauties are the centerpiece of what the country offers.
At the same time, some sectors contribute to the economy highly, from construction, agriculture and local manufacturing, which helped GPD rates grow by 19.5% in 2021. The efforts of the governments and the people drive Dominica towards economic expansion to the point of basic transactions and services on blockchain.
The Caribbean Island is among the few seeking technological development, which is why its economy has increased after the pandemic. The strategies of the Dominican Republic to introduce the metaverse within its systems to attract more tourists is a great way to help the country flourish and make investors see the benefits of the Caribbeans.