National Digital Currencya catalyst for Curaçao and Sint Maartenfor (e-)commerce & innovation

Presented by

Efia Scuotto-Luis, COO

Topics

• IBIS Management & University of Curaçao collaboration

• Reality of Our Small Economy

• Enabling a New Reality for Curaçao & Sint Maarten

• The Conceptual Framework

• Concerns & Considerations

• HQ in Curaçao since 2000

• Guiding financial institutions and corporates in becoming Profitably Efficient

• Focus on

• Operational Excellence and Efficiency in Payment Processing

• Bank Connectivity experts including SWIFT solutions and others cross-boarder payments

• 200+ Implementations

• Blockchain Research, Development and Project Management, Consulting services

Trusted Advisor to Caribbean Financial Institutions

& Innovator of banking solutions

We ARE the Caribbean

Guide Forward-looking companies in

how blockchain technology can

add value to current

processes

and bring

Curaçao to a leading

position in the Caribbean

Our role

IBIS-UoC Collaboration

Small Economy

CASH BASED ECONOMY PAYMENT INFRASTRUCTURE DOMINATED BY FEW COMMERCIAL BANKS

FINANCIAL EXCLUSION& ILLITERACY

DEPENDENCY LIMITED ECONOMY DRIVERS

LIMITED ECONOMIES OF SCALE

INNOVATION GAP IMPACT OF POLITICAL INSTABILITY

Our reality• Male driven society, but female dominating in population numbers

• Labor force approximately 44% of total population

• Registered unemployment rate of 13%

• Youth unemployment rate……• Inflation 2018: 2.6%• GDP per capita annual growth rate: -0.5% (2017)• GDP real growth 2018: -1.9% (projection CBCS)

a worrying 30%!

• No real-time online payment possibilities

• Non-existent local E-commerce

• Inefficient and non-transparent payment systems

• Attitude of commercial banks towards payment innovation

• Unaffordable financial products working against financial inclusion

• Informal economy (unreported activities)

Our local financial systemlimitations

We are in need of a financial platform or monetary system that ………..The stage is set

Is inclusive

Is flexible

Enables

FairPromotes

AddressingOur limitations

National Digital Currency

The enabler:

National Digital Currency

Real time online

payment

Local (e-) commerce

Transparent and

controllable

economy

Improved tax-based

economy

Financial inclusion

Less cash economy

A newreality

Spinoff

effect

Development of apps

Digital ID

Smart contracts

E-services

Data driven economy

New industry (digital)

Small business inclusionCBDC flow

Benefits NDC network:

• No cash payments means less security risks for consumers and merchants

• With NDC payment, tax deduction and payment could be facilitated instantly

• No costs related to cash management

• Record of NDC payment permanently stored, without possibility of alteration

Current flow

ConsumerCash payment No receipt of

purchase

Consumer Receipt of payment

QR-code scan

Online shopping & paymentsCurrent flow CBDC flow

Benefits NDC network:

• Simplified and efficient payment process

• Payments remain local, no foreign card networks are used

• No credit card (transaction) fees required

• Possibility of payment with NDC contributes directly to local e-commerce development and platform for further innovation

• Instant settlement, no delay in payment and settlement process

Credit card payment

Acquiringbank

Issuingbank

Credit card network

Merchant account funded

Online webshop QR code scan Merchant receives payment

ConceptualFramework

CBDCEcosystem

For

Curaçao &Sint Maarten

Basic CBDC platform features

POWER COMPUTERS (NODES)

BLOCKCHAIN PROTOCOL: THE SET OF

RULES

MOBILE WALLET APPLICATIONS

CBDC ADDRESS TO PROCESS AND IDENTIFY TRANSACTIONAL DATA.

HD WALLETS

WEB API MULTI-PLATFORM CBDC APPLICATION

Monetary• Authority to issue digital currency• Adjustment of monetary policies and applicable laws• Pegged to fiat currency

Political• Approval & acceptance by both governments as legal tender• Commitment of both governments to support and promote CDDC

Operational• Laws & regulations• Financial institutions responsible for distributing & promoting usage• Stakeholders Involvement and commitment • Universal accessibility• Nationwide adoption

Technical & security• Cyber Security• Data Protection• Secured & protected digital currency• Permission Blockchain

Education• Digital currency awareness & recognition by all parties in the network

Concerns & Considerations

Benefits are greater than:Domestic payment efficiency

Costs & risk of distribution

and cash management