Overstock’s $16 Million investment in Bitcoin company funds financial disruption across the Caribbean
At a press conference in Barbados on Friday, alongside the Minister of Finance, Overstock CEO Patrick Byrne announced closing a US$4 Million Series A investment in Barbadian bitcoin exchange Bitt. The funds constitute the first installment of a staggered investment from the retail giant, totalling US$16 million, and places Bitt’s valuation at US$50 million, according to the company.
The benefits outweigh the costs of holding bitcoins for the Central Bank of Barbados
Two prominent economists in Barbados have published a paper, aimed at the Central Bank of their country, that makes a very compelling argument for holding bitcoin reserves, showing why such a course of action has far more upside than downside for the debt-ridden country.
Should Cryptocurrencies Be Included In The Portfolio Of International Reserves Held By The Central Bank Of Barbados? (Working paper)
In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange, or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible there use might expand in the future. This paper therefore examines the potential role of cryptocurrencies as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets.
Bitt Raises $1.5 Million
Bitt closed its $1.5 million seed round with Avatar Capital, a Caribbean investment group based in Trinidad and Tobago. This initial capital investment will allow Bitt to continue to develop and expand its core services.