Will the new Payment Systems and Services Bill allow for cross-border currency exchanges? Will it include the credit union sector?
Those were some of the questions raised by Tobagonians during Tuesday’s Public Consultation on the Draft Payment Systems and Services Bill, hosted by the Central Bank at the Shaw Park Complex in Tobago.
The Bill is expected to be laid in Parliament in September 2026.
Assistant Manager of Payments and Financial Markets Infrastructure, Jeanette Joseph, explained that the new Payment Systems and Services Bill aims to promote “the safety, soundness, and efficiency of the national payment system,” along with providing greater legal certainty and protection for users, payment clearing and settlement systems, and a modular risk-based regime.
“Facilitating e-commerce, encouraging cashless payments, and promoting financial inclusion.”
Simply explained, the Bill is the legal framework for the Central Bank to govern fintech solutions such as digital wallets.
However, one audience member, Wendell Walker, questioned the availability of payment in foreign currency.
“Is there any provision for foreign currency conversion? So if I am a visitor, I come with euros, or pounds or whatever?”
The short answer, according to Senior Legal Manager at the Central Bank of T&T, Nicole Chapman, is no. Authorised money transfer services such as Western Union and MoneyGram will be granted special licences to continue transferring money outside the country.
“Outside of that, that person would have to change their currency into TT to be able to load. You will have to use the authorised dealers and make the charge to do so.”
Deputy Governor of Monetary Operations and Policy at the Central Bank, Dr. Dorian Noel, however, noted that work is happening at the G20 level and within CARICOM to use different currencies through local digital platforms.
“We are working on a CARICOM payment and settlement system which would be a faster cross-border payment system which will hopefully treat with the issue of access, affordability, speed and efficiency.”
The challenge lies in harmonising systems and laws across borders. However, this Bill is one step in that process.
Another member of the audience, Anselm Richards, asked about credit unions.
Dr. Noel responded, “So the question is whether the credit unions are willing to be regulated or supervised by the Central Bank. And that is a big debate, and I’m going to leave that there.”
However, Dr. Noel said credit unions have the freedom to establish digital wallets for transactions between the institution and its customers.
Tobagonians were also assured that already established international digital payment systems will not be required to obtain licences to operate from the Central Bank because they are already operating within an international framework of laws.
The Bill remains open for public comments until June 20th, 2026.