BPNG Regulatory Sandbox Officially Launched
The Bank of Papua New Guinea last week launched its Regulatory Sandbox – the first of its kind in the Pacific Island region.
As Papua New Guinea’s Central Bank and Financial Regulator this comes following its recent announcement during a Media Q&A that shared the banks progress in using blockchain technology to support digital identity and financial inclusion in Papua New Guinea.
The Regulatory Sandbox will permit the testing of new solutions for use in enhancing financial inclusion in PNG.
It will provide a controlled environment for the testing of new technologies to create new social and economic opportunities.
Close dialogue and interaction between BPNG and sandbox participants will enable any potential risks to the market and to consumers to be identified and resolved at an early stage, helping to accelerate the time-to-market for viable solutions.
Bank of PNG Governor Loi Bakani and his deputies were on hand to launch the Sandbox.
“BPNG recognizes the potential benefits of innovative technologies to create new products and services that could enhance the provision of financial services to enhance financial inclusion.
We are thrilled to announce the launch of BPNG’s Regulatory Sandbox and are excited about the new possibilities it will create,” Mr Bakani said.
BPNG will welcome participation in its Regulatory Sandbox from authorized financial institutions already active in PNG as well as those that do not fall under the regulatory purview of BPNG but where the nature of their innovation may require regulatory approval from BPNG.
Prospective applicants who have successfully tested a solution/concept through a sandbox in another jurisdiction and who can demonstrate the potential benefit to PNG may be considered for a fast-tracked sandbox process.
BPNG Assistant Governor Corporate Affairs Ms Elizabethe Genia said: “This will also help to establish the foundation for a Pacific-wide arrangement whereby successful exit from the BPNG sandbox could qualify as a solution for fast-tracking into another the Pacific market, helping to nurture a thriving environment for innovation in the region.”
Interested parties are urged to visit the BPNG website for www.bankpng.gov.pg/regulatory-sandbox where you can find information on Sandbox Regulations and requirements to join.
Salient Features of a Regulatory Sandbox:
A designated environment to build anything you want (well almost anything)
A safe environment with clear boundaries and safeguards
Ideas must be innovative, will accelerate financial inclusion and add to PNG’s growth
BPNG will relax some, though not all, of its rules
Consequences of failure can be discovered, and as a result, contained
The goal of the Bank of PNG is financial inclusion for all PNG citizens and to use new technologies to promote development and growth.
Having a regulatory Sandbox makes PNG more attractive for innovators & investors while providing a testing ground for existing regulations and for ensuring fit-for-purpose regulation.