Cash must remain an option, BCEN says ahead of instant payment system rollout

The Barbados Consumer Empowerment Network (BCEN) is urging the government and the Central Bank to proceed with caution as they prepare to roll out the new Instant Payment System (IPS).

BCEN Executive Chairman Maureen Holder on Friday called for a balanced and inclusive approach to the national digital finance initiative, warning that rushing its implementation without adequate safeguards could cause unintended harm.

“Although the general claim is that Barbados is way behind in terms of getting on board with respect to digital and online platforms, it does not mean that we are to throw caution to the wind,” Holder told Barbados TODAY.

“While BCEN acknowledges the potential benefits of a modern digital economy, we also recognise that moving too quickly – without robust consumer protections, cybersecurity systems, and inclusive planning – could lead to serious harm,” she warned.

Holder suggested that Barbados should take lessons from countries such as Sweden, the United States, and Germany, which have had to revise or reverse aspects of their digital finance strategies after moving too fast.

The BCEN head said her organisation’s appeal to local authorities is not to abandon cash, but to modernise around it.

“BCEN is of the view that cash remains essential for thousands of Barbadians, especially the elderly, low-income earners, and unbanked individuals who do not have reliable access to smartphones, the internet, or digital literacy training,” Holder said. “We are therefore calling for a dual-track approach, where cash and digital options coexist, allowing for choice, inclusion, and security.”

The consumer advocacy group is also concerned that Barbados lacks the cybersecurity capacity and legal framework necessary to protect consumers if digital finance becomes the norm.

Holder contends that Barbados cannot afford to build financial digital platforms on a shaky foundation.

“BCEN is calling on the Central Bank and the Ministry of Finance to phase in the IPS only after cybersecurity, legal protections, and public education systems are in place; to legally protect the right to use cash in all everyday transactions; and ensure inclusive access for all Barbadians, not just the digitally connected,” said the consumer group leader.

BCEN also believes Barbados can lead in digital finance, but only if the country brings everyone along.

Holder concluded that a cashless society that leaves people behind is not progress, but exclusion.

Earlier this week, the Central Bank announced it is overhauling the country’s payment system in a move that promises faster, cheaper, and more secure transactions for everyday consumers and businesses.

The new IPS, set to launch in March next year, will replace what officials describe as an outdated and fragmented network that currently slows down money transfers and limits access for smaller financial institutions.

Governor Dr Kevin Greenidge said the new system will create a more inclusive financial ecosystem, eliminating barriers between banks, credit unions, and other financial institutions to allow seamless real-time transfers. (EJ)