For example, the Monetary Authority of Singapore engages in official regulatory sandboxes, where for a predetermined period regulatory requirements are relaxed, to allow an assessment of the impact and inherent risks of start-up companies. This level of experimentation with technology-driven entities is aimed at ensuring that economic opportunities are not foregone by creating the space to explore innovation.
This is something that the Central Bank of Barbados has received a proposal for and is now considering. In closing, what is evident today is that: Innovation in Fintech could have a net positive impact on the financial system, provided that risks are adequately managed. Distributed ledger technology has obvious transformative capacity but there are still important challenges to overcome.