Prime Minister Mia Mottley has stepped in to quell a potential standoff between the fintech (financial technology) company Bitt and some commercial banks by announcing a digital currency pilot project.
Mottley did not give details of the planned mobile wallet pilot project or when it would begin but gave the assurance that it would not be done in a reckless manner.
Her comments came on Tuesday as she responded to comments by Chief Executive Officer of Bitt Senator Rawdon Adams, during the company’s second annual blockchain conference at the Hilton Resort under the theme Central Bank Meets Blockchain: From the Ground Up.
Bitt utilizes blockchain and distributed ledger technology to facilitate secure peer-to-peer transactions through mobile money across a range of software and mobile applications.
But the CEO complained of the reluctance of some unnamed commercial banks to embrace Bitt’s proposal to partner with them in introducing this form of artificial intelligence in moving money between clients.
Insisting that the mobile wallet project, mMoney, was not a competitor but a complement to the financial services industry, Adams said there was a mix reaction from commercial banks with some being “sympathetic”, others not knowing what to make of the mobile wallet and others being “hostile”.
“We are seeking to demonstrate what hundreds of merchants and now thousands of users know already, that digital currency is ready to be used as a complement to existing payment methods both in Barbados and across the region,” he said.
At least one banker had referred to the mMoney wallet as a “potential danger to the financial system”, Senator Adams said, which represented a competitive stance.
But saying this “nonsense must stop”, the Prime Minister called for an end to “this unfortunate debate and discussion and tension between those who want to hold on to a status quo and those who want to move forward”.
“The nonsense must stop. The conflict that has permeated our environment with respect to who will speak to who and who will not speak to who and who will not do what with whom,” she said, suggesting that the only ones to suffer would be the population.
Giving the assurance that the approach to be taken with the mobile wallet pilot project would not be one-size-fits-all, Mottley promised that legitimate concerns of banks and regulators would be addressed.
Stating that she was not prepared to “hobble development and constrain progress by refusing to admit that the world continues to evolve”, the no-nonsense leader said there was need for an urgent face-to-face discussion to take place on the matter,
which she said she was prepared to take the lead on.
“Such that we can launch the Barbados Mmoney pilot, a pilot between Bitt, Central Bank and the FSC [Financial Service Commission] that facilitates electronic payments, digital payments for our people in Barbados,” Mottley said to sustained applause.
She said she was doing so not because it was easy but because there were “legitimate concerns on all sides” and it was a “complex” matter.
“I do so because this country cannot and will not be stuck at a moment in time,” Mottley added, while pointing out that fear was one of the most paralyzing of emotions.
“This country cannot be held by the fear of the unknown. We will not be reckless because that is not our nature but we will move forward from this day confident that the Barbados Mmoney pilot must take place and if the pilot says it is not good then so be it, but if the pilot says it is good then so be it as well,” said Mottley.
“We have a very large potential client in this country to sign a contract. They haven’t signed a contract yet because their bank refuses to accept any transfer of money from us to them,” he revealed, without naming the bank.
While Bitt had made three attempts to have an appointment with the bank in question, those requests have been shot down each time without good reason, Adams told the packed room of central bankers, commercial bankers, entrepreneurs, and executives from technology firms, tourism and multilateral organizations.
“All we are asking now is for a meeting so that we can understand what their objection is and they have said ‘our internal stakeholders are not supportive of the initiative at this time. We are not prepared to participate. Sorry, we will have to decline’,” said Adams.
He expressed disappointment that Bitt had a “deeper relationship” and was developing more partnerships in Trinidad and Tobago and Jamaica and the rest of the Eastern Caribbean than in Barbados – “the territory that arguably needs fintech the most”.
Pointing to the current pressures being put on commercial banks in relation to correspondent banking issues, Adams said it was better for fintech companies and banks to work together in order “to meet the breadth and depth of true market demand for financial services”.
Adding that Bitt was not asking commercial banks for a favour, Adams said “it was one thing to be competitive, but it is another thing to be obstructive and anticompetitive”.
The Prime Minister also gave the assurance that she would ensure that Barbados would remain compliant with anti-money laundering laws and know your customer guidelines, adding that nobody should be able to point a finger at Barbados or “use a fist against us”.
Bitcoin is a digital currency created in 2009 by a mysterious figure using the alias Satoshi Nakamoto. This I have learnt from a website through Google.It can be used to buy and sell items from people and companies that accept Bitcoin as payment.But it differs in several key ways from traditional currencies which are highly regulated. One of the fears of Bitcoin is the easy access to money launderers who cannot then be so easily traced, as opposed to if they try filtering their ill-gotten gains through banks.This may be why the local banks have taken their firm stand opposing its use as Senator Adams stated. But it in interesting the players in this initiative. Taam Abed’s son Gareiel two former but disgruntled DEMS, teaming up with the BEES and Tom Adams son. We might be witnessing the formation of a financial empire on this little rock called Barbados, who knows.
As Xpected….
Wow! That constitutional juggling – nationalistic or self serving?
Will Sen Adams preside over any matters likely to directly affect his business interests?
All of a sudden This this guy Got alot of say in barbados.money now could be move with out trace.i see the writing on the wall from day one.well played.The banks Ain no saints but they know why thier putting up resistance to this currency.That all for now.
In other words, put Barbados back in the tax-haven and money-laundering business.
Conflict of interest.
In our case Bitt currency is a 2 sided sword. On one side it would ease the drain on the reserves of the central bank as it is not supported by hard currency.on the other though it is virtually impossible to track these transactions or collect taxes from them. It is a matter that requires great caution and consideration going forward.
The banks will resist because blockchain tech shifts the control of finances from them to a decentralized network. The user fees used to give them healthy profits will be threatened.
I will usd this but noway i am kepping more than $150 on it. The players are strange
Now I see the benefits for Adam’s return to Barbados. The members of this administration with their alleged ill gotten gains from the period 1994 – 2008 are now seeking to launder and move their money undetected.
Yes the local banking fraternity are working against the people of this country with their refusal to assist in the development of small businesses, as was indicated with the recent call for Barbadians to purchase cars. These are very serious times for this country and it’s citizens. Barbadians need to realize that in trying economic times like these, the launderers of money see our country as an easy target to sell and purchase for profit.
This Party in power needs to be watched carefully, and all the political parties in this country needs to step up the monitoring of the workings of this party. They need to represent the interest of the people now if they one day desire to lead this nation.
@John: exactly. The need to preserve/protect VAT collections seems to be a particularly vulnerability. I know, for a fact, that some mid-sized professional firms felt obliged to deal in cash over the last “ten years of tears”..rather than lose valuable business. Now, with digital money….one cellphone, for the books…uthuh cellphone “off-books”?