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Since the announcement by Prime Minister Mia Mottley announcing the launch of a pilot project with FinTech company Bitt Inc,  there has been a growing concern among the savvy segment of the population about the project.

There is the Heraclitus cliché that ‘the only thing that is constant is change‘. Commonsense therefore informs a view that technology will continue to be used by humankind to interact with the ecosystem for as long as we exist. The challenge however for Barbados is effectively managing the timing of the adoption of new technologies to optimally support efforts to maintain a quality of life for Barbadians.

The blogmaster holds no brief for government’s arrangement with Bitt Inc. Often times provocative positions taken by the blogmaster to canvas and ferret information on topical issues – especially those where there is heavy fog – is misunderstood. It is a hazard of what we do and have no issues with it.

Subject matter experts in the IT field endorse the disruptive impact the use of technology driven solutions will continue to have on the the central bank controlled fiat system.  A system that is tired and has been manipulated to the point of minus-utility in the opinion of the blogmaster.

What are a few key concerns about the project?

  1. lack of a legislative environment to safeguard the integrity of the market
  2. security issues
  3. SMEs say Barbados need mobile/online payment solutions, not a digital currency
  4. Bitt Inc does not have a robust IT/governance platform to certify with best in class FIs to be a disruptor
  5. Barbados is an immature cybersecurity space operating without a ‘sanctioned’ roadmap’

Several commenters continue to conflate the issues while responding to the Bitt Inc Barbados government pilot partnership.  The pilot arrangement which promotes a digital currency should not be confused with other concerns about cryptocurrency, Bitcoin and Blockchain technology for example. Clearly there is a need for public education. There is also a responsibility for individuals to educate themselves about the important issues.

In the public interest Barbados Underground reblogs the following LinkedIn article by Niel Harper, a Barbados Consultant qualified in the area of Internet Security and whose expertise is sought after internationally.

 

Why Bitcoin Will Not Solve the Caribbean’s Financial Inclusion Woes

Posted on by 70 comments

The article was shared by Niel Harper, Managing Director, Octave Consulting | Program Lead, Internet Society | VP, TEN Habitat | WEF Young Global Leader What is Bitcoin? Is it electronic money? There’s a deluge of hype around Bitcoin and blockchain technologies right now, and policymakers and regulators in the Caribbean are doing their best to wrap their heads around

Read more

 

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277 responses to “More Information Needed About Government’s Partnership with Bitt Inc”

  1. Mariposa Avatar
    Mariposa

    The Root of all deception

  2. Wily Coyote Avatar
    Wily Coyote

    Wily has a question, he would like to see the hard copy of the agreement of BITT and GOB, with included “EXTRAS” commissions etc like one previous government minister extracted from a local insurance company. This hard copy will no doubt NOT EXIST or cannot be released for privacy reasons.

    Wily is always suspicious of GOB motives when there is an opportunity for graft corruption. WHAT HAS HAPPENED TO ALL PREVIOUS GOVERMENTS PROMISED TRANSPARENCY LEGISLATION.

    GOB is and has always been great at exploiting all SHOW & TELL oppurtunities, a lot of FLUF.

  3. Wily Coyote Avatar
    Wily Coyote

    Like the attached article outlines, general public at the momment confusion cryptocurrency, online payment systems, blockchain etc. These are all different entities in their infancy development, to early to tell if any will live to adulthood. Basically all are operating in unregulated and ungoverned areas with no protection for the users. Small third world countries(Barbados) are ripe for explotation.

    Snake oil salesman operating on a global level with no oversight.

  4. Observing Avatar
    Observing

    Rawdon Adams runs BITT.
    Adams announced Senator.
    Constitution changed.
    Government partners with BITT.

    Pretty much sums it up.

    btw, Neil’s article was excellent reading then as it is now. .

    Just Observing

  5. peterlawrencethompson Avatar
    peterlawrencethompson

    Niel’s article is straightforward and accurate. (Full disclosure: Niel is a director on the board of the non-profit organization where I work.)

  6. peterlawrencethompson Avatar
    peterlawrencethompson

    This is an egregious example of the scams which pervade cryptocurrency promotion. This event is taking place this evening at the Barbados Public Workers Credit Union… which will lead the gullible to think that it has the endorsement of the Credit Union.

    OneLife is a COMPLETE SCAM!

    https://scontent.fbgi1-1.fna.fbcdn.net/v/t1.0-9/42251843_2006934092692452_259928079269363712_n.jpg?_nc_cat=0&oh=20d3b4b29f35a0d950ab0cd03a202709&oe=5C627B2A

  7. David Avatar
    David

    Peter

    Bushie’s credit Union?

  8. Mariposa Avatar
    Mariposa

    Mia default caused Barbados to be locked into a legalized scam called the IMF a system dominated by predatory lending practices will eventually leave barbadians poor and homeless
    Now MIa proposes that barbadians take an interest in another scam

  9. peterlawrencethompson Avatar
    peterlawrencethompson

    @David

    My Credit Union 🙁

  10. peterlawrencethompson Avatar
    peterlawrencethompson

    These clowns are from ODT Caribbean, which promotes OneLife and OneCoin.

    “OneCoin is a Ponzi scheme promoted as a cryptocoin with a private blockchain. It is promoted by offshore companies OneCoin Ltd (Dubai) and OneLife Network Ltd (Belize), both founded by Ruja Ignatova. A Chinese prosecutor recovered 1.7 billion yuan (US$267.5 million) while prosecuting 98 people for the scam.”
    https://en.wikipedia.org/wiki/OneCoin

  11. WARU Avatar
    WARU

    All the scamsters are slithering out of their holes to rip off the gullible using government, senators and ministers ripe for bribing…it is up to the majority population whose eyes they are all trying to juck out to tief their money….to IGNORE THEM ALL..take your money out of the banks if you must.

    ….chase them back into their holes, they will leave when they lose their investment money and CANNOT see a return.

  12. David Avatar
    David

    Of the 195 countries in the world 189 countries are members of the IMF.

    Barbados became a member in December 29, 1970 (note the date).

    Under the member relationship Barbados has accrued 94.5 million SDR drawing rights. We learned recently that the staff approved 200 plus percent above the quote.

  13. Artax Avatar
    Artax

    “Mia default caused Barbados to be locked into a legalized scam called the IMF a system dominated by predatory lending practices…..”

    To any of the Mariposas (they are a legion, because they are many)

    Could you please explain to BU…..WITHOUT using your usual generalised statements and political yard-fowl rhetoric….

    …….explain your description of the IMF as a “legalized scam”

    …….and what are the IMF’s “predatory lending practices?”

    And since you wrote that statement, perhaps you may want to inform BU about the details of government’s arrangements with the IMF.

  14. Ping Pong Avatar
    Ping Pong

    What has Senator Kay McConney done (or proposed to do) since being appointed a Minister? What innovation, science or smart technology has been proposed?

  15. peterlawrencethompson Avatar
    peterlawrencethompson

    “In what could be seen as wise financial counseling or a threat, the International Monetary Fund is urging the Republic of the Marshall Islands (RMI) to abandon its plan to launch a cryprocurrency as legal tender.”
    https://gizmodo.com/cool-island-bullied-by-imf-to-abandon-digital-currency-1828978413

  16. David Avatar
    David

    @Peter

    The article is interesting if only for the lack of coherent reasons why the small country should shelf the Sovereign as alternative legal legal tender.

  17. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU

    Since you do not want a discussion based on generalities I think BU bloggers need the specifics of the relationship between the GoB ,the Central Bank of Barbados and BITT. The latter two relationships in my view creates a moral hazard.

  18. David Avatar
    David

    @Vincent

    What does the headline of the blog suggests?

  19. TheOGazerts Avatar
    TheOGazerts

    It’s the silence of Fraudel masked by lots of noise from ‘others’

  20. peterlawrencethompson Avatar
    peterlawrencethompson

    Vincent Codrington September 23, 2018 10:00 AM
    Bitt has so far signed MOUs with two central banks: the Eastern Caribbean Central Bank (ECCB) and the Central Bank of Curaçao & Sint Maarten. I do not belive they have signed one with the Barbados Central Bank yet, but if they do it will likely be like the ones that they have signed with the ECCB “to develop, deploy and test technology which focuses on data management, compliance and transaction monitoring system for Know Your Customer, Anti-Money Laundering, and Combating the Financing of Terrorism (KYC/AML/CFT). This will help to improve the risk profile of the Eastern Caribbean Currency Union (ECCU) and mitigate against the trend of de-risking by the region’s correspondent banking partners. The pilot will also focus on developing a secure, resilient digital payment and settlement platform with embedded regional and global compliance; and the issuance of a digital EC currency which will operate alongside physical EC currency.”

  21. Vincent Codrington Avatar
    Vincent Codrington

    @ David at 10:01 AM.

    I am not sure what the caption suggests.
    Is there no information?
    Is this a kite flying exercise?
    Is this an attempt to convey the impression that GoB is supportive of BITT?
    Is it suggesting that the GoB and BITT are in a joint program of developing cryptocurrencies?

  22. David Avatar
    David

    @Vincent

    It is what it is to state the obvious. We have had a lot of noise with the announcement from government about the pilot with Bitt Inc, we wait more details about the project brief.

  23. Vincent Codrington Avatar
    Vincent Codrington

    @ David BU at 10 :19 AM

    Thanks for the clarification. I will await the information in the spirit of Transparency.

  24. Vincent Codrington Avatar
    Vincent Codrington

    In the meanwhile I think we need to bone up on the blockchain technology ; the effect cryptocurrencies may have on managing the local economy,detecting corruption; and the speed with which system wide collapse of economies may occur.

  25. David Avatar
    David

    @Peter

    We need to focus on the institutional and legislative strengthening required in the prevailing environment given the unstoppable impact of technology. Barbados continues to lag. Case in point, the Data Processing Department (DPD) appears to have to have substantive responsibility for cybersecurity. It is an authority managed in the breach for the same old reason that affects the Auditor General department for example.

  26. abajanhowe Avatar
    abajanhowe

    Let’s not forget how Bitt. Inc started. Was it money from T&T that no one knew where it originated or by whom and shrouded in secrecy and mystery?

  27. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    @ Wily Coyote September 23, 2018 8:41 AM

    In the spirit of integrity in public life campaign and FOI that is being promoted by the BLP administration let us see the details of the pilot. It cant hurt if all is above board. There is nothing light sunlight

  28. peterlawrencethompson Avatar
    peterlawrencethompson

    @abajanhowe September 23, 2018 10:49 AM
    There is no secrecy or mystery. Bitt was started with Abed family money. It was founded by Gabriel Abed and Oliver Gale. In 2016 US company Overstock promised to invest US$16 million in the company at a valuation of US$50 million. The first tranche was US$4 million. This year a further $3 million was advanced… it is not clear when or if the remaining US$9 million will be forthcoming because both of the founders, Abed & Gale, have been forced out of the executive suite and replaced by people hired by Overstock.

  29. sirfuzzy (i was a sheep some years ago; not a sheep anymore) Avatar
    sirfuzzy (i was a sheep some years ago; not a sheep anymore)

    MIA (missing in acton) are Due diligence; regulation and enforcement may be declared KIA(kiled in action.) unless we wise up about ROI and PONZI schemes and be taken to CLEANERS of every RED cent we got.

  30. Tron Avatar
    Tron

    Wily mentioned sweeeeet deals. OK …

    What about the loan for Apes Hill Plantation to run COW´s bankrupt project? Does the new gov still support this failed plantation? I would like to mention that the securities for the loan are highly overvalued, given the storm on the BB property market after the defaiult …

    Why have the COP and the DPP not started any investigation against Dr Robinson and his crew? Lock them up!

  31. David Avatar
    David

    Bitt Inc people are on morning radio!

    http://vob929.com/listen-live-3/

  32. abajanhowe Avatar
    abajanhowe

    @Peter L.
    It was founded by Gabriel Abed and Oliver Gale. In 2016 US company Overstock promised to invest US$16 million in the company at a valuation of US$50 million. The first tranche was US$4 million. This year a further $3 million was advanced… it is not clear when or if the remaining US$9 million will be forthcoming because both of the founders, Abed & Gale, have been forced out of the executive suite and replaced by people hired by Overstock.

    Founded by but FUNDED originally by whom? Do you know and would you tell us

  33. Vincent Codrington Avatar
    Vincent Codrington

    There is no technological lag in Barbados at all. Neither our education systems nor our telecommunication systems allow this. We are a pragmatic people. We employ technology when and if it is fit for purpose. We are not interested in pompasetting.

  34. peterlawrencethompson Avatar
    peterlawrencethompson

    Happening now on VOB 929 Brasstacks. Jeremy Stephen and Bitt discussing digital currencies and the upcoming pilot with the Central Bank for a national digital payment system. Listen online:
    https://tunein.com/radio/VOB-929FM-s16653/

  35. peterlawrencethompson Avatar
    peterlawrencethompson

    @abajanhowe September 23, 2018 11:10 AM
    As I stated: “Bitt was started with Abed family money.”

  36. WARU Avatar
    WARU

    Bitt needs competition with this mMoney, it is disingenuous of Rawdon to believe that Bajans are still carrying a 1970s – 80s mentality where Bajans DID NOT KNOW BEFORE that they are supposed to question PMs, ministers and senators regarding these fly by night UNREGULATED scams, particularly when the information is not voluntarily and we would not have gotten this much information if we did not demand answers.

    So Bitt will benefit immensely.

    The banks will benefit immensely…all according to these snake oil salesmen.

    So how much money will those customers who use this mMoney service make from using the service.

    .

  37. WARU Avatar
    WARU

    Ya see what happens when you use con games on people to start a business..lol

    ..representatives from Bitt including Abed used the Bitcoin wave to introduce the company through central bank and spread enough bullshit around that the only thing now stuck in most Bajan’s heads is the negativity attached to Bitcoin…because that is what they initially pushed down the Bajans and Caribbean people’s throats..they did not say anything about mMoney because they were making it all up as they went along…until they got to mMoney.

    Now Dukharan will try to polish it up with more bullshit…

    Look at the nasty political yardfowl analogy that Stephens is using, condescending ahole…at least the female caller knows him.

  38. WARU Avatar
    WARU

    Barbados is the guinea pig for Bitt…why not use Trinidad with 1.2 million people ..first

    or Jamaica with 2.2 million or more population.

    The bigger the population, the more effective the results from the pilot/experiment.

  39. David Avatar
    David

    @Peter

    There you have it, a nugget of information from Marla which reveals that the MOU with the ECCB and Central Bank of Barbados allow for testing of a cross border transaction. This has implications for stress on foreign reserves. The blogmaster did guess the nexus at play.

  40. TheOGazerts Avatar
    TheOGazerts

    @BajahHowe
    How can Overstock force out the Abeds?
    The initial valuation of the company was $50 M. With the recent infusion of $3M cash, the current valuation is about $35 million dollars. So the Overstock ownership is now about 20% (7/35) or 16.5% (4/50 +3/35) depending on the valuation. Overstock does not own a majority,

    Interesting facts,
    1) if Overstock adhere to contributing $16m and the valuation of Bitt continues to fall and falls below $32M, they become majority owners unless bit find away to bail out
    2) If Barbados devalues it currency then Overstock picks Bitt up for a song. That is probably why Overstock is using an incremental acquisition.

    Wondering how they are figuring out the valuation and how it changes.

  41. WARU Avatar
    WARU

    Regulators did nothing to regulate CLICO..neither did the government

    Regulators did nothing to regulate the crooked insurance companies that still run their rackets against injured people and criminal enterprises on the island…and government don’t touch them either.

    …..all the long talk..Rawdon and Stephens need to impress upon the people that mMoney CANNOT REPLACE hard currency…not for a very, very long time IF EVER..

    They are laughing, but solar flares have knocked out equipment before:

    “On the morning of 6 September the sun let out two pretty sizeable burps of radiation. Both were considered X-class — the strongest type of solar flare — with one of them proving to be the most powerful since 2005. If a solar flare is directed at Earth, which these ones were, it can generate a radiation storm that interferes with radio and GPS signals. The biggest flare ever recorded, in 2003, was so strong it even knocked out NASA’s solar measurement equipment. ”

    Bitt hopes to make billions from this service, a good thing for themselves…so just how much will the customers make from the service, never believe anyone who tells you their service is free, it does not exist, from 20c now, in 5 years time it will be $3 or more..

    The moderator might have gone over it for an hour, but Bitt and Abed rolled out a Bitcoin scam since last year…and that is all people will remember….BITCOINS.

    Was it KPMG or another accounting firm not also the people who helped Cow dip his hands in and rip off the NIS Pension Fund hundreds of millions of dollars UNDER THE PREVIOUS GOVERNMENT?

    Although I don’t even like the word segregated.

    But…as segregated as the mMoney account will be, the execs will still have access to other people’s money IN THE ACCOUNT…and that still presents a problem.

    “Segregated account is a bank account or securities account in which a customer’s funds are held separate from the funds of a brokerage firm. Thus, for example, in the United States the law requires that a broker must hold separately, in separate accounts on the broker’s books, securities it holds for its customers from securities of the broker itself.[1]

    This is done to create a clear separation between the two groups of money so client funds are not used for the wrong purpose. A central reason for the rule is that it also helps ensure that the money or securities can be easily identified as belonging to customers in case a firm becomes bankrupt. In many jurisdictions segregated accounts cannot be used to pay creditors during a liquidation and must be returned to the customers directly.

    In most countries brokerage firms must maintain a segregated account on the brokerage firm’s books to make sure that the client’s money and the firm’s money is not intermingled, and clients funds are not used for operational purposes.

    Historically, unscrupulous stock brokers have used clients funds for their own use, which often resulted in the failure of the brokerage with the loss of client funds. Holding a segregated account is some measure to protect against such unscrupulous and fraudulent behaviour.”

  42. David Avatar
    David

    This is an effort is another to clear the fog about the underlying technology about the mmoney project, it is not Bitcoin, it is not a cryptocurrency. Some people are conflating the issues because blockchain technology was first used to support Bitcoin as a crytocurrency.

    https://blockgeeks.com/guides/what-is-blockchain-technology/

  43. David Avatar
    David

    Another clarification – hard currency is fiat money which means it is not backed by anything. The money if we accept what is being proposed – the blogmaster holds no brief for the Bitt people – a segregated fund backs the float of tractions generated by mmoney.

  44. Money Laundering Avatar
    Money Laundering

    Bitt Inc., was started by Gabriel Abed after he returned from Canada and opened an office at Hastings Plaza which is owned by his uncle Moses.

    The company was initially funded by web development work and then by major drug dealers such as Anthony Nadur who owns an Air-conditioning company.

    The whole ethos when it started was to assist the major drug smugglers locally fund their overseas transactions without trace as being done on the Dark/Deep Web via Bitcoin.

    The Trinidadian company who later invested is involved heavily in the cocaine business from next door Venezuela and hence suited their strategy.

    I would know as I was approached by Gabriel in the beginning when he returned and was doing web development.

    Targeting major drug dealers was an obvious strategy as it brought large amounts of cash transactions to the table both locally and in Trinidad.

    Also the Abed, Nadur and Moses families are known big time drug players and heavily connected so it was easy for Gabriel to find clients in the network both inside and outside of Barbados

  45. WARU Avatar
    WARU

    That lady is right, should Bitt fail..and the segregated account is raided by execs…who in the Mia government will lock up Rawdon or Abed or anyone from Overstock ..all of whom would have already taken flights off the island, should such occur, so who in the Mia government will ask the FBI or Interpol for help to arrest them in other countries…

    Ya need a damn Smart Phone, those carry data.

    They marketed Bitcoin from day one and expect people to know and accept mMoney just so..without any questions asked…

  46. Guest Avatar
    Guest

    The only information required is whether any relationship between the GoB and Bitt is brought about by any relationship between any Government MP, Minister, Senator or other senior GoB official and Bitt.

    The Prime Minister, a Government Minister, a Government Senator or any other person holding a significant position with the Barbados Government shall not use his or her position with respect to the Barbados Government or information gained by way of his or her position with respect to the Barbados Government for the benefit of himself, herself or a related party.

  47. David Avatar
    David

    What is your point? Wasn’t the banking system in the US in the early days controlled by dirty money? Let us assume what you are saying is correct, is the company situated that way today? You can respond to close this matter. The blogmaster is aware of the agenda being perpetrated with this matter.

  48. john2 Avatar
    john2

    If the IMF is predatory , I wonder what the CS loan is?

  49. WARU Avatar
    WARU

    Simple girl…you may soon need to have a Smart Phone with Data AND an mMoney APP to catch the ZR vans…lol

    No more $2 van..ya will have to give up the ZR men..it will get too expensive to see them.

  50. TheOGazerts Avatar
    TheOGazerts

    PLT, thanks for sharing that link.

    I was able to listen in and I love the caller who reprimanded the panel on their laughter. Silly caller or not, if you want my money, show some respect.

The blogmaster invites you to join the discussion.

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