Excerpt from Bitcoin Magazine
It’s a place full of unique natural resources, hard-working people and destinations sought by tourists from around the world. But its economies have been thoroughly and devastatingly “de-risked” by major global banks, a process that has seen these banks place restrictions on Caribbean businesses over anti-money laundering (AML) or other regulatory concerns. This makes it exceptionally difficult for Caribbean businesses to participate in the legacy financial system, particularly for making cross-border fund transfers.
“Banks pulling out of the region include the Bank of America, Scotiabank, Royal Bank of Canada, and CIBC,” the Center for Strategic & International Studies reported on the de-risking of the Caribbean that followed the 2008 financial crisis. “Banks from the Netherlands, Germany, and the United Kingdom also restricted their [corresponding banking relationships] business with Caribbean jurisdictions.”
Of course, Bitcoin can provide a lifeline for individuals or businesses that find themselves cut off from financial institutions. Bitcoin is supported by individual nodes running its software and transactions are approved and verified by a network of international miners that are motivated predominately by fees, and not required to adhere to any set of regulations.
Island Innovation is a social enterprise and digital media company at the intersection of sustainable development and communications, offering specialised services across various sectors. We bring together the private sector, government, utilities, NGOs and universities to advance innovation for sustainability and prosperity in islands worldwide.
