Barbados sets up fintech sandbox

Barbados' central bank (CBB) and financial services commission (FSC) are working to establish a regulatory sandbox for fintech development.

A note from official news service GIS stated the authorities are collaborating on the sandbox project to "provide regulatory clarity for businesses offering viable and new financial technology products, services and solutions."

The joint effort recognizes that fintech innovation "could play a critical role in safely lowering the costs of financial transactions, while offering more efficient services to consumers, without undermining the financial system."

"In a sandbox, the innovative product, service, business model or delivery mechanism is observed and tested within a restricted space that protects both consumers and the financial system from undue risk," said CBB and FSC in a joint statement.

To this end, a regulatory review panel, comprising nominees from FSC, CBB, and the nation's director of finance and economic affairs, will oversee the operations of the regulatory sandbox, according to the news service.