Update Country Report Curaçao 31 Jan 2022

What's happened?

In mid-January the Central Bank of Curaçao and Sint Maarten (CBCS) announced that commercial banks in both countries will now be able to process instant payments. This capability will bring the islands in line with global banking norms, increasing connectivity between Curaçao's banking sector and the global financial system.

Why does it matter?

The establishment of an instant payments system in Curaçao will enable easier financial management for individuals and businesses, and will bring the island in line with developed financial markets. From now on, all interbank payments between Curaçao, Sint Maarten and Bonaire will be processed within 10 seconds, including outside of banking hours and on public holidays. The new payments system forms part of the CBCS's long-term aim of upgrading the islands' financial sector infrastructure, in order to boost investment attractiveness. To provide the infrastructure required to facilitate instant payments, the CBCS has partnered with local commercial banks and French fintech firm, Worldline.

All but two banks in the three islands are participating in the instant payments network, with the remaining two set to join later this year. The system will also be rolled out to peer-to-peer (P2P), person-to-business (P2B) and person-to-government (P2G) payments, effectively bringing the majority of online and mobile payments in Curaçao into the instant payments system, facilitating quick and easy financial transfers and payments. Payments can be made in either US dollars or Netherlands Antillean guilders. Once the system has been fully rolled out over the course of 2022, Curaçao's instant payments system will be connected to that of the Netherlands and, potentially, developed markets such as the US—an important source of investment and tourism for Curaçao.

What next?

As the island's instant payments system gains greater international connections, this will boost Curaçao's attractiveness as a financial centre, with positive knock-on effects for overall economic growth. In addition to providing faster access to international financial markets, advancements in instant payments will also foster greater financial inclusivity in Curaçao, especially once the sector rolls out instant payments via mobile phones.