Blockchain Open Source and Open Standards compliance solutions provider Netki has unveiled the first central bank production platform using its Digital Identity Service. Working with Bitt, a Barbados-based company employing the blockchain with digital payments, Netki will provide the solution through blockchain-based central bank digital currency issuance with the potential to modernize the region’s financial system, the companies say.
“Bitt joined forces with Netki as part of our ongoing initiative to bolster compliance efforts and provide an effective means for all people, including underbanked individuals to engage in the global economy through digital payments that are low cost, secure, easy to use and highly efficient,” Bitt CEO Gabriel Abed said.
“Correspondent banks have de-risked some local Caribbean banks based on perceived higher risk and lower returns,” Bitt president Oliver Gale said. “This prevents these local Caribbean banks from having access to foreign markets and also hurts merchants and customers who are unable to access foreign banks and financial institutions.”
In a release Netki said the Caribbean includes more than 7,000 islands, 13 sovereign island nations and 12 dependent territories, many employing their own financial systems and currencies. As the region struggles with low growth, de-risking effects and compliance costs, a central bank digital currency holds promise.
“For new innovation, inclusion and value creation to happen on the blockchain, financial institutions must meet risk and compliance regulations, which Netki provides through its Digital Identity Service,” Netki CEO Justin Newton said. “With a digital identity standard in place, financial institutions can realize the benefits of blockchain, expand their service offerings and market coverage.”
Netki Digital Identity Solutions are being used with Bitt’s Mobile Wallet, Merchant Processor, Teller, ATM, Debit Card, and Exchange. Bitt is providing the payment network to interconnect the Caribbean using the blockchain to form the Caribbean Settlement Network.