a catalyst for curaçao and sint maarten for (e-)commerce ...€¦ · 09/07/2019 · the enabler:...
TRANSCRIPT
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