On the 18th September 2018, Prime Minister of Barbados, the Honourable Mia Amor Mottley, announced that Bitt, the Central Bank of Barbados and the Financial Services Commission (FSC) would establish the Regulatory Sandbox Framework. This coincided with Prime Minister Mottley’s announcement about the launch of mMoney on the island.

What’s a Sandbox?

Simply put, a Regulatory Sandbox Framework permits businesses to conduct market testing of innovative financial products and services while protecting consumer interests. As Jason Henrichs stated, in American Banker, “… without innovation, customers lose”. Sandboxes allow for both businesses and customers to win through innovation.

Sandboxes have been around since 2015, with the UK launching the first in the world. This was steadily followed by countries that vary in GDP, population, location and geographical size including Australia, Thailand, and Mozambique. In mid-2018, the USA, the world’s most over-banked country, agreed to the idea of exploring a Sandbox. With almost 5,000 different banks in operation, Americans have a long and vibrant relationship with banking. With enhanced speed, convenience, privacy and security, FinTech and digital currencies would interrupt the American banking status quo. Therefore, it comes as no surprise that Americans have been slow to embrace the concept of digital currency.

How does the Sandbox impact you?

The Sandbox was designed to protect institutions and consumers during the trial of technological exploration. So, as it was designed, your best interests (and those of all consumers) will be protected!

What’s next?

The Central Bank of Barbados and the Financial Services Commission will evaluate the findings of the Sandbox to ensure that financial integrity and ethical standards have been established and maintained. Once these regulators are objectively satisfied that Bitt’s operations meet international best practices, the mMoney ‘Purple Wave’ will roll across the Caribbean.

Your mMoney Team