The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

FINTECH can help “promote greater financial inclusion” and provide a banking solution for those without accounts in the region, said Prime Minister Philip “Brave” Davis yesterday.

Speaking at the D3 Bahamas Web3 and FinTech Conference, Mr Davis said The Bahamas entering the digital asset space provides a solution to the banking challenges many Family Islanders face due commercial banks closing branches.

He said: “The global financial landscape is constantly evolving. Across the Caribbean and Latin America, there is a growing population of unbanked people. The Bahamas has faced its own share of challenges, as traditional financial institutions have closed branches in an effort to streamline and consolidate operations.

“On some of our islands, people are forced to travel by boat or plane just to perform basic financial transactions. Our adoption of Fintech isn’t just about responding to external changes or attracting investors, it is also about providing solutions to domestic challenges. We see Fintech and DeFi as opportunities to promote greater financial inclusion throughout our archipelago and across the region.”

He said FinTech and digital currencies can provide an opportunity to address inequality by providing an accessible alternative in a technologically advanced landscape and acknowledged that many persons that can benefit from the use of digital assets do not have access to it.

He said: “Despite the widespread use of the internet and technology in day-to-day life, there are still many people in our societies who lack access and knowledge. They are now in danger of being left behind. This digital divide, in many ways, reflects pre-existing income and social challenges. Those who would benefit most from inclusion in digital and financial systems are often the ones who have the least access.

“Web3, DeFi, and Fintech, in general, represent such great opportunities for growth – it would be a shame for the world to move forward without using these technologies to address inequity and injustice. We cannot allow this new economic reality to mature while preserving inequality.”

He added that the Central Bank’s Digital Currency (CBDC) the Sand Dollar was the first in the world and its framework can provide a model for other countries interested in implementing a digital currency.

He said: “In 2020, as we finalised the DARE Act, we also launched the Sand Dollar, the world’s first Central Bank Digital Currency. As an early innovator, we are among a handful of countries in the world that are actively developing effective strategies for the rollout and integration of digital fiat currencies.

“It is our intention to set the pace and develop the model that others will look to when they decide to follow suit in launching their own CBDCs.

Of course, as we develop these solutions, we must also put the necessary infrastructure in place to support growth and advancement.”