Netki, a provider of Open Source and Open Standards compliance solutions for blockchains, has announced the first production platform for Central Banks using its Digital Identity Service. Bitt, an architect of blockchain and distributed ledger based technology infrastructure for interbank transactions and cash digitization systems for central banks, and Netki provide the solution through a blockchain based central bank digital currency issuance that has the potential to modernize the financial system of the region, hopefully heralding the establishment of a stronger payment and settlement framework with greater levels of economic growth.
CEO of Bitt, Gabriel Abed stated: “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,”
Oliver Gale, President of Bitt, explained: “Correspondent banks have de-risked some local Caribbean banks based on perceived higher risk and lower returns. 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.”
Spread across more than 7000 islands, the Caribbean has 13 sovereign island nations and 12 dependent territories, most with their own financial system and currency. To try and stabilize their independent currencies, a number of local currencies are pegged to the US dollar or Euro. Many Caribbean nations are still struggling with low economic growth, the effects of de-risking by US correspondent banks and the high cost of compliance. Central bank digital currency issuance is a viable solution to solve a number of problems in the payments system. With both Bitt and Netki working together, central banks in their role as regulators and banks will have the necessary identity information required for transactions. This will lower risk levels and increase the ease of doing business.
Justin Newton, CEO of Netki, remarked: “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. 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. The Netki Digital Identity Solution manages the on-boarding process through identification, know your customer requirements and compliance.
Netki issues certificates for communication between peers using the BIP75 protocol where identities are exchanged meeting risk and compliance regulations. Additionally, the Netki solution streamlines on-boarding of new customers, merchants and banks to use this process.