Today EMTECH announced its pilot-ready innovation and regulatory compliance platform, the Modern Central Bank Sandbox™, targeting central banks looking to streamline regulatory reviews, collaborate with innovators on emerging technology, or safely test their Central Bank Digital Currencies (CBDC). With the Modern Central Bank Sandbox™ EMTECH empowers central banks to overcome systemic challenges that currently exist within financial services (Exclusion, KYC, SME Lending, Cross-Border Payments, AML/Fraud), and to innovate safely, while providing effective oversight, and accelerating time to market for innovative financial products. EMTECH is actively working with the Central Bank of the Bahamas on the release of its Digital Sand Dollar currency.
Central banks today hold $9 Trillion in paper cash. In digitizing paper currency with CBDC, central banks create unprecedented liquidity that benefits small businesses and individuals while maintaining the central bank money as the anchor of a robust and competitive financial sector. By providing the infrastructure for digital cash, EMTECH provides central banks an action-ready toolset for new and inclusive monetary policy, and the guardrails for efficient transfer of an estimated $90 Trillion in cash payments.
“By enabling central banks to deploy the EMTECH Modern Central Bank Sandbox™, we help regulators leapfrog existing regulatory frameworks and systems, and adopt an innovation mindset as well as an innovation toolset,” said EMTECH CEO and co-founder Carmelle Cadet. “Our ability to help the leaders at central banks operationalize monetary and economic policy promotes multi-stakeholder collaboration and innovation, such as exposing CBDC Test APIs for industry testing. This is why EMTECH is the Fintech of Modern Central Banking,” Cadet said. Cadet is a former IBM Corporation Business Executive with experience in enterprise software, blockchain and global fintech innovation.
Central Bank Digital Currencies (CBDC) could change all financial relationships, according to the latest Deutsche Bank Wealth Management CIO report from Sept. 2020. Increased transaction speed, security and transparency, and more effective monetary policy are key benefits of CBDC, according to Deutsche Bank. EMTECH’s announcement today offers an actionable solution for secure and phased implementation of such initiatives worldwide. The firm is currently engaged with several central banks, and working with the leading cloud provider Microsoft, to deploy pilots in the coming months.
“Microsoft Azure is a key enabler of the digital transformation journey of customers all over the world. We look forward to helping EMTECH on its global mission to enable accelerated central bank digital innovation, harnessed on Microsoft’s highly secure, compliant and scalable Azure platform,” said Chris Lwanga, Principal Director, Microsoft Corporation.
The EMTECH leadership and founding team also includes D. R. Maurice, a finance industry regulator with an extensive portfolio of risk management duties, and who served at the Federal Reserve, The U.S Treasury Department, and as an advisor to central banks in emerging and transitional markets. EMTECH Chief Technology Officer Evgeni Mitkov is a veteran of Wallet Street, who brings extensive payments, FX and capital markets expertise, and has built, scaled, and sold two high frequency trading platforms.