The Caribbean Tourism Organization is going to introduce cryptocurrency payments for tourism services and products offered in the region. In partnership with a local company, CTO wants to implement crypto-based merchant applications in the travel industry and other related sectors. Another goal is to further integrate the region’s economies through more cryptocurrency transactions.
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Embracing Cryptos to Deal With Issues and Restrictions
Trying to adequately address economic and financial issues, Caribbean governments and businesses are increasingly turning towards cryptocurrencies like bitcoin. The region has been experiencing sluggish growth and high debt rates for some time. In recent years, large U.S. banks have been withdrawing capital from the Caribbean markets. Their “de-risking” policies have created a deficit of banking services. Local banks and authorities have been accused of aiding money-laundering practices and are dealing with restricted access to foreign exchange reserves. All this has affected Caribbean economies, which are heavily dependent on tourism and international trade.
The Caribbean Tourism Organization has become the latest regional institution to embrace cryptocurrencies, local news outlets reported. has reached an agreement with the -based blockchain company Bitt Inc. to facilitate “the implementation of more efficient payment processes for tourism products and services”, officials announced. A memorandum of understanding has been signed in order to help “foster broader economic participation in community-based tourism and related sectors” through the use of cryptocurrencies. The partners intend to implement “efficient and cost effective” digital payment products and services in the region’s most important industry.
“The Caribbean aims to fully examine the advantages offered by the new financial technology,” said CTO’s secretary general Hugh Riley, quoted by Caribbean News Digital. He believes blockchain services have the potential to advance the objectives of specific programs and activities within the tourism sector. “The CTO has a responsibility, on behalf of our members, to fully explore these possibilities,” Riley stressed.
“Tourism is the largest single contributor to the Caribbean economy. It is absolutely critical to every single Caribbean nation’s well-being and development. We see this as a very natural and necessary association,” said Bitt’s CEO Rawdon Adams, quoted by Travel Pulse. “We know how transformational our technology can be,” he added.
Banking the Unbanked, Financing the Underfinanced
Cryptocurrencies offer Caribbean nations the opportunity to increase availability of financial services. A large portion of the local population lacks basic access to the banking sector. According to a 2015 World Bank report, about 50% of Caribbean residents do not even have a bank account.
Cryptos can also help Caribbean businesses which suffer from U.S. restrictions with access to dollar-based foreign exchange reserves. The biggest economies in the region, like Jamaica and Barbados, rely on import/export of goods and services and need to finance these operations. Cryptocurrencies can be used in both international and regional trade and will help reduce foreign exchange costs. Authorities and businesses believe crypto payments could also increase profits, while decreasing consumer costs.
Caribbean nations are taking steps towards cryptocurrency adoption on several other fronts. Earlier this year, the Eastern Caribbean Central Bank (ECCB) announced it’s considering issuing a new crypto called the Digital Eastern Caribbean Dollar (DXCD). Eight governments and economies are behind the bank and the crypto project. “The decision to move closer to a cashless society is in keeping with our overall development strategy, and also that of the ECCB,” Donaldson Romeo, premier of Montserrat, told the Gleaner in February.
Recently, the government of announced its decision to set up a cryptocurrency exchange. The island nation hopes to generate revenue for its treasury by facilitating crypto trade for a fee. Officials in St. John’s want to bring together buyers and sellers of cryptocurrency, but also “bring Antigua into the game”. Placing the country “on the cutting edge of the new system of creating wealth” has been declared as a priority.
Do you think the wider adoption of cryptocurrencies in the tourism industry can help Caribbean nations stabilize their economies? Tell us in the comments section below.
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Major corporations in South Korea are increasingly establishing cryptocurrency subsidiaries and launching initial coin offerings outside of the country due to prohibitive regulations. They are seeking opportunities in countries like Japan, Switzerland, Singapore, and Gibraltar.
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Regulations Driving Away Businesses
An increasing number of corporations in South Korea are establishing cryptocurrency and blockchain subsidiaries abroad due to restrictive regulations. Money Today elaborated:
Korea’s largest Internet and mobile companies have left Korea one after another as they entered virtual currency and blockchain businesses.
Many companies are leaving Korea because the government has banned initial coin offerings (ICOs), the news outlet noted and recalled financial authorities declaring last September, “We will ban ICOs in all forms, regardless of technology or terminology.”
Former lawmaker Jeon Ha-jin was quoted by the publication, “global blockchain companies are watching Korea, but the government has kicked out opportunities.” Calling for full legalization of ICOs, he conveyed that the government’s ban on ICOs has blocked funding for companies entering the crypto and blockchain space.
Corporations Seek Opportunities Abroad
Recently, the parent companies of the two most popular chat apps, Line’s Naver and Kakao Corp, announced that they have established crypto and blockchain subsidiaries in Japan. The operator of Kakao Talk established a blockchain subsidiary called Ground X. Naver established a subsidiary called Line Financial which has applied for a to operate a crypto exchange with the Japanese Financial Services Agency (FSA).
In March, Business Korea reported that South Korean healthcare companies are increasingly launching their ICOs abroad including Zikto, My23 Healthcare, and Medibloc, adding:
Domestic companies are leaving South Korea and setting up a subsidiary overseas, like Singapore and Gibraltar, to run ICOs.
Hyundai BS&C, an affiliate of South Korean conglomerate Hyundai group, also recently launched its ICO in Switzerland.
Korean startup Theloop, a subsidiary of Dayli Financial Group, launched an ICO and set up a foundation in Switzerland as well. Dayli Financial also owns one of South Korea’s largest crypto exchanges, Coinone.
Park Chang-ki, chairman of Governtech and founder of major financial information portal, Paxnet, also established a foundation in Switzerland and launched an ICO.
While token sales are currently banned in South Korea, the Korea Times last month that the government may be allowing them in future regulations. “The financial authorities have been talking to the country’s tax agency, justice ministry and other relevant government offices about a plan to allow ICOs in Korea when certain conditions are met,” the news outlet quoted an anonymous source.
What do you think of companies leaving South Korea to set up crypto subsidiaries and launch their ICOs abroad? Let us know in the comments section below.
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