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El Salvador Unveils National FinTech Strategy to Revolutionize Digital Financial Ecosystem
The Central Reserve Bank of El Salvador has taken a significant step towards positioning itself as the first country in Central America to adopt a comprehensive FinTech framework. On December 5th, 2023, the bank unveiled its National FinTech Strategy, which aims to develop a cutting-edge digital financial ecosystem that promotes innovation while ensuring balance and regulation.
Key Components of the FinTech Strategy
The strategy outlines the technical regulations necessary for the growth of the financial technology industry in El Salvador. Key areas of focus include:
- Data Governance and Infrastructure: Ensuring the secure management and storage of customer data.
- Interoperability: Facilitating seamless interactions between different payment systems and services.
- Digital Services Regulation: Establishing clear guidelines for online services, including cloud computing and cybersecurity.
- Customer Informed Consent and Privacy Regulations: Protecting customers’ personal information and ensuring their consent is obtained before sharing or processing data.
- Consumer Protection Measures: Safeguarding consumers from financial harm and promoting fair business practices.
Existing Laws and Technical Regulations
The FinTech Strategy emphasizes the importance of existing laws related to technological neutrality, digital identity, privacy, and cybersecurity. New technical regulations will be developed for payment and securities settlement systems, as well as surveillance applicable to payment instruments and services. These regulations will cover:
- Authorizations to operate
- Digital platforms
- Technological requirements
- Product and service offerings
- Suppliers
- Data protection
- Cybersecurity
- Anti-money laundering measures
- Financing of terrorism
Impact on Businesses
El Salvador’s FinTech Strategy has far-reaching implications for businesses operating in the country, including U.S. companies looking to enter the market. The strategy provides a clear framework for navigating El Salvador’s regulatory environment and ensuring compliance with relevant laws and regulations.
Quote from the Central Reserve Bank of El Salvador
“El Salvador is committed to creating an innovative and secure digital financial ecosystem that promotes economic growth and development,” said a spokesperson for the Central Reserve Bank of El Salvador. “We believe that our FinTech Strategy will provide a competitive advantage for businesses operating in the country, while also protecting consumers and ensuring the integrity of our financial system.”
Resources
For more information on El Salvador’s FinTech Strategy, including access to a Spanish-language copy of the document, visit the official website. U.S. companies interested in learning more about business opportunities in El Salvador can contact the U.S. Commercial Service Office in San Salvador at office.sansalvador@trade.gov.