Financial technology firm Bitt has welcomed news that the Central Bank and the Financial Services Commission (FSC) have established a framework for a regulatory sandbox.
This mechanism is intended to provide clarity for businesses offering novel fintech products, services and solutions.
A regulatory sandbox allows for a trial of newly developed technologies in a well-defined and controlled space for a specified period, after which, a determination is made whether it should be regulated by an existing regulation or a new one.
Bitt’s Chief Economist Marla Dukharan told Barbados TODAY she was excited about the news, adding that this could lead to an increase in confidence in the products and services being offered by fintech firms in Barbados.
“It is so exciting because it means Barbados is not just saying to everybody ‘come and do what you want and put our system at risk or put our consumers at risk’. No. We are saying ‘come let’s look at what you do, we give you a time period within which to operate, we observe very closely what you are doing and at the end of the period we make a determination as to the way forward’. That is why this is so exciting, because it means we are embracing advancement and innovation without putting the system and the consumers at risk,” she explained.
The regional economist agreed that the regulatory sandbox could result in the opening of new doors for fintech firms based in Barbados, as they sought to attract more business and new partners.
“For us to be regulated in Barbados would be a dream come true,” she said, noting that Bitt was one of the fintech firms which had been seeking for years to be regulated.
She explained that the regulatory sandbox would give greater confidence and credibility to the products and services of fintech firms, and provide consumers with a level of protection and assurance that the innovation was safe.