Netki, a provider of Open Source and Open Standards compliance solutions for blockchains, announced today at Consensus the first production platform for Central Banks using its Digital Identity Service. Bitt 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 Caribbean region, thereby ushering in the establishment of a stronger payment and settlement framework with unprecedented levels of economic growth.
Bitt is the architect of blockchain and distributed ledger based technology infrastructure for interbank transactions and cash digitization systems for central banks. “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,” said Gabriel Abed, CEO and Co-Founder of Bitt.
“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,” said Oliver Gale, President and Co-Founder of Bitt.
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 today. With both Bitt and Netki working together, central banks in their role as regulators and banks will have all the necessary identity information required for transactions. This will lower risk levels and increase the ease of doing business.
Netki CEO Justin Newton, Bitt CEO Gabriel Abed and Central Bank of Aruba General Manager ( Economic Policy), Ryan Petersen, presented a keynote on the main stage at Consensus. The presentation began with an overview of Netki and Bitt’s technology and how it meets the risk and compliance requirements of central banks and ends with the Bank of Aruba’s representative joining the conversation to discuss goals, challenges and opportunities for blockchain technology as a tool for financial inclusion and market access.
“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,” said Justin Newton, CEO of Netki. “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 onboarding 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 onboarding of new customers, merchants and banks to use this process. A short video on how this works is available at https://youtu.be/zD0pErlZBYM.
About Netki: Founded in 2014, Netki is a Los Angeles based financial technology company developing Open Source and Open Standards based Digital Identity solutions that allow financial service companies to meet regulatory compliance requirements and legal non repudiation on both public and private blockchains. Netki’s digital identity solutions are part of the IBM blockchain ecosystem and PwC Australia’s Digital Asset Services. For more information, visit https://www.netki.com.
About Bitt: Bitt’s business model is focused on using blockchain technology to facilitate digital payments, the issuance of digital fiat currency by central banks and the introduction of a regional settlement network for the Caribbean. Bitt is headquartered in Barbados, and locally employs approximately 50 people. In April 2016, US based Overstock.com, partnered with Bitt to boost the company’s development providing investment, operational, legal and other strategic resources leveraging the vast network of talent from their own team as well as teams from related ventures such as T0 and PeerNova. For more information visit https://www.bitt.com.