Leveraging Technology and New Alternative Funding Models for Stage Two Funding of the SM@RT BARBADOS initiative, which is to finance the "execution" of specific development projects.


    Over the past five years, the emerging technology known as blockchain has spawned a new type of venture funding called "Token Sales". As with any new process and system, the first iteration is always far from ideal. This was true for what was then known as "Initial Coin Offerings" or ICOs, where a lack of transparency and regulatory oversight created an opportunity for bad actors to participate and threaten the potential of the new funding model.
    Today, however, some six years later, the model has evolved to one where greater transparency and regulatory oversight have brought a new stability and credibility to token sales, including the recent introduction of what is now called Security Token Offerings (STOs). STOs are token sales where the tokens represent legal securities and are subject to the securities laws of the jurisdictions where they are issued from and sold into. Not every token used for funding a project, however, is a security. Some of them can be what is known as a "UTILITY" token, a token which by its associated rights and assigned characteristics, does not legally constitute a security.
    To fund the SM@RT BARBADOS Sustainable Economic Development Initiative, a technology focused initiative, we will be utilizing both types of token sales - a Utility Token Offering (UTO) and separately, a Security Token Offering (STO). The reason we will be utilizing both a Utility Token Offering and a Security Token Offering, is that it is important for Barbadian citizens both at home and abroad, as well as everyday citizens from countries worldwide who know and love Barbados, to be able to participate directly in supporting the initiative and thus Barbados financially, without that financial support being an "investment in securities".
    However, in a digital world where bad actors are everywhere seeking to exploit legitimate projects and initiatives for nefarious purposes, it is critical that we do everything in our power to safeguard the reputation of Barbados and all parties involved in this SM@RT BARBADOS initiative. Therefore, whether you are an accredited investor making an investment into one or more projects within the initiative, or just an everyday citizen financially supporting the initiative via the purchase of our Utility tokens, you will need to go through our Anti Money Laundering and Know Your Customer (AML/KYC) process.
    As this SM@RT BARBADOS initiative is specifically for the direct benefit of the nation of Barbados, we are pleased to note a couple of very positive developments within the Barbados financial sector, that augur very well for the manifestation of the Blockchain-powered Future Barbados that we at SM@RT are earnestly seeking to accelerate via this initiative. These positive developments are noted below.

    Positive Development #1

    SEP 2018: mMoney Pilot Programme Announced

    Barbados at the government level, has already begun embracing blockchain technology, whereby the Barbados Central Bank, the Financial Services Commission and the Barbados based blockchain company Bitt, will collaborate on an "mMoney Pilot Program" initiated by Barbados' new Prime Minister, the Honourable Mia Mottley.

    Positive Development #2

    FEB 2019: Listing of Security Token Offerings

    The Barbados Stock Exchange is also aggressively moving to embrace the financial asset trading and management potential of blockchain technology. They have recently announced that they are partnering with Canadian FinTech company Blockstation to facilitate the listing of Regulated Security Token Offerings (STOs).