Financial technology firm Bitt Digital Inc. has become the first company to pass stress tests to meet the standard as a mover of digital money, under a regulatory model set up by
the Central Bank of Barbados and the Financial Services Commission, the bank said today.
Known as the regulatory sandbox, the framework provided Bitt with the opportunity to test its blockchain-based fintech products, services, and business models in a controlled environment while protecting consumers, stakeholders and the financial system from undue risk.
In a letter to Bitt, Central Bank Governor Cleviston Haynes said: “On behalf of the panel, I can confirm that the Regulatory Review Panel (RRP) considers the type of business activity trialled by Bitt to be a candidate for regulation under legislation that is currently being drafted.
“The RRP now deems the testing period to be complete.”
The approval on July 5 follows a review of Bitt’s operations during the eight-month-long Regulatory Sandbox Framework, the letter said.
Responding to the announcement, CEO Senator Rawdon Adams said: “It is absolutely necessary that all financial services companies work with regulators and grant them full oversight of their operations.
“Technology is the ideal partner for the financial services sector to take on to boost productivity – and with it economic growth.
“The results of this Sandbox will provide great comfort to our potential partners and to consumers.”
Senator Adams also spoke about the relevance of the pending Data Protection Act to Bitt’s exit from the sandbox: “Consumers, businesses, licensed financial institutions, governments and investors can rest assured that Bitt is operating in full compliance with the laws of Barbados and is equipped to protect all client data from privacy risks.”