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National Digital Currencya catalyst for Curaçao and Sint Maartenfor (e-)commerce & innovation
Presented by
Efia Scuotto-Luis, COO
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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
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• 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
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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
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IBIS-UoC Collaboration
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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
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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%!
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• 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
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We are in need of a financial platform or monetary system that ………..The stage is set
Is inclusive
Is flexible
Enables
FairPromotes
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AddressingOur limitations
National Digital Currency
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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)
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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
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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
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ConceptualFramework
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CBDCEcosystem
For
Curaçao &Sint Maarten
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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
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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
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