A Regulatory Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers.

For businesses, a Sandbox presents an opportunity to test the viability of their product, service, etc. on a small scale, and allows them to detect and address any issues before the product or service is offered on a wider scale.

Businesses offer their innovative products and services to the public on a small scale, while being closely monitored by Regulators. Regulators monitor the activity and determine if the product or service should be regulated.

FinTech innovations can differ significantly from traditional financial services, so there can be some uncertainty on how they should be regulated. By allowing businesses to test their products and services within the controlled live environment of a Regulatory Sandbox, the CBB and FSC, as Barbados’ financial regulators, will be able to determine whether existing regulations are sufficient to protect consumers, or if new legislation is needed.

The Regulatory Sandbox is intended for businesses testing technology-based financial products and services.

The duration will vary based on the nature of the product or service being offered by the business.

In preparation for the withdrawal of the one cent coin, the Bank drafted a set of rounding guidelines for handling cash transactions.

Under these guidelines, the prices of individual items does not need to be altered. At the checkout, however, for cash payments only, the total of all the items to be purchased will be rounded up or down to the nearest .05. Totals ending in .01 or .02 will be rounded down to .00. Similarly, totals ending .06 or .07 will be rounded down to .05. Conversely, totals ending .03 or .04 will be rounded up to .05, and those ending .08 and .09 will be rounded up to .10. The maximum gain or loss for any single transaction is .02.

Non-cash transactions, e.g. those made using debit or credit cards or by cheque, will not be subject to rounding as exact payment can be made.

Yes. The one cent remains legal tender, so consumers can continue to use one cents at businesses that accept them.

If a business continues to accept one cent coins and the customer has exact change, the total does not need to be rounded.

Barbadians can continue to deposit one cents at their commercial bank or credit union. Barbadians should consult their financial institutions in advance to determine how best to make deposits.

The one cent will remain legal tender, so financial institutions and retailers are free to continue to accept them indefinitely.

At present there are no plans to phase out the five cent coin.

Yes. Read the regulations related the one cent withdrawal and the rounding policy. 

No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.

Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.

A Sandbox allows regulators to gain a better understanding of the product or service and to determine what, if any, regulation is necessary to protect consumers and the financial system.

For businesses, a Sandbox presents an opportunity for them to test the viability of their product or service on a small scale, and allows them to detect and address any issues before the product or service is offered to a wider audience.

Businesses offer their innovative products and services to the public on a small-scale basis, while being closely monitored by regulators. Regulators keep track of the activity and determine whether the product or service is viable as well as if and how it should be regulated.

Being in the Sandbox allows businesses to discover and address any regulatory concerns early in the life of the product or service, thereby avoiding the possibility of major regulatory issues being discovered after the product or service has been offered on a wider scale.

To be eligible to participate in the Regulatory Sandbox, the product or service being offered by the business:

1. Represents a genuine financial innovation;
2. Uses technologies that are as yet unproven and whose failure would give rise to risks to consumers or financial stability;
3. As a result of new technologies or practices, creates ambiguity as to the appropriate regulatory regime for the product or service;
4. Has been subject to adequate and appropriate functionality and risk assessments.

Yes. Businesses hoping to participate in the Regulatory Sandbox are required to pay the applicable fees, which will be used to cover regulatory and administrative costs.

The application process includes two major steps. The business must:

1. Complete an application form and Confidential Statements for each shareholder, prospective shareholder, director and executive officer and submit to regSandbox@centralbank.org.bb; or regsandbox@fsc.gov.bb as applicable.
2. Pay a fee, which will be used to cover the associated regulatory and administrative costs.

The duration of a business’ participation in the Regulatory Sandbox will be determined by a Regulatory Review Panel (RRP) based on the nature and complexity of the product or service.

Based on issues or concerns that emerge during testing, the RRP may extend the time beyond what was originally anticipated. A business can also request to have the time extended.

Once a business has successfully completed testing in the Sandbox, the RRP will issue a report that outlines how the product or service performed during its participation in the Regulatory Sandbox.

1. Any new regulatory issues that were identified during testing and whether satisfactorily addressed.
2. Where the RRP has determined that the product or service falls within the scope of existing legislation, the entity should make a formal application for a licence under that legislation.
3. Where a product or service does not fall within the scope of existing legislation, and should be regulated, the CBB and/or FSC will be responsible for ensuring that appropriate regulatory framework is developed.
4. A detailed explanation, where the RRP has recommended that the product or service should not be licensed.

Transactions that do not involve cash do not need to be rounded since payment can be made for the exact total.

No. The prices of individual items should remain the same. The rounding policy applies only to the total cost of the items.

Yes. Read the regulations related the one cent withdrawal and the rounding policy. 

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The Central Bank of Barbados is introducing an instant payment system as part of its efforts to modernise the national payment system. The goal is to ensure financial inclusion for all Barbadians, improve the ease of doing business, in part by reducing payment delays that create cash flow challenges for small businesses, and encourage innovation by providing a base platform on which entities in the financial technology space can build.

The system first verifies the sender’s identity through multifactor authentication (this includes a combination of passwords, PIN codes, or biometrics). It then confirms that the sender has sufficient funds in their account or digital wallet and that the recipient’s information is correct before executing the transaction. The sender and the recipient both receive a notification confirming the transfer, and the system settles the transaction, making the funds instantly available to the recipient. This is all completed in a matter of seconds. 

While Automated Clearing House (ACH) transactions can take hours to several days to complete and operate on banking hours. Real-Time Payments (RTP) transactions are faster and typically settle within minutes. However, their availability outside of regular banking hours depends on the financial institution. In contrast, instant payment systems complete and settle transactions within seconds and are available 24/7, 365 days a year, including nights, bank holidays and weekends. 

In addition, instant payment systems do not require you to have the recipient’s banking information, and, in fact, do not require either you or your recipient to have an account at a financial institution.

Read this article for more information on the differences between instant payments and ACH/RTP.

Instant payments offer multiple benefits, including 

• Convenience – instant payment systems operate 24/7, 365
• Speed – you have immediate access to your funds when someone sends you an instant payment
• Security – instant payment systems use encryption, multi-factor authentication, and real-time fraud detection systems to protect your money and information
• Interoperability – instant payment systems integrate with banks’ platforms, digital wallets, and financial apps, which allows you to make transactions with people and businesses who bank with different financial institutions or use different e-money services

Read this article to learn more about the benefits of instant payments and then learn more about the security features built into instant payment systems.

Because transactions are settled immediately, transfers you make via instant payments are irrevocable. It is therefore important that you ensure you have entered correct information before confirming the payment. The system will prompt you to re-check the payment details before you hit send.

Instant payments are very safe. They use encryption, multi-factor authentication, and real-time fraud detection systems to protect your money and information. 

Yes. You will be able transfer money to a relative or friend in Barbados, and that person doesn’t need to bank with the same financial institution that you do. In fact, neither you nor they need to have an account at any financial institution at all.

Yes. You will be able to use BiMPay to pay your utility bill. You’ll also be able to buy groceries, to fill up at the gas station, or even to renew your driver’s licence.

While the plan is for BiMPay to be able to facilitate cross-border transactions, in the initial stages, you will only be able to use it to send and receive local payments.

No. You can send money to anyone using the instant payment system, even if they use a different bank or payment provider.

Yes. You will be able to use BiMPay even if you don’t have a traditional bank account. That’s because the instant payment system also integrates with digital wallets.

No. Because instant payment systems use real-time settlement, transactions are generally irrevocable. It is therefore important that you review the details carefully before confirming a payment. The system will prompt you to do this before you hit send. If you do make an error in your transaction, contact your financial institution or payment service provider immediately as delays in reporting the error could reduce the chance of recovering the funds. 

If you accidentally send money to the wrong person, contact your financial institution or payment service provider immediately. Your institution might contact the person or business that received the funds to ask them to return it.

No. BiMPay is not a central bank digital currency. A CBDC is a type of currency, while BiMPay, as an instant payment system, is a way of sending and receiving payments.

Read this article for more information on the differences between instant payments and CBDCs.

BiMPay will become the platform (or payment rail) on which all existing (and future) digital wallet services will sit. These services will continue to operate, but because the base platform will be the same, they will be fully interoperable.

In short, BiMPay will facilitate these services, not replace them.

Yes. It will be mandatory for commercial banks and some other financial institutions to become   participants for the national instant payment system.

Only authorised institutions such as your bank, the receiver’s bank or payment provider will have access to your information. Your information is protected by strict privacy and security rules.