The Central Bank is preparing a comprehensive digital payments roadmap that includes payments legislation, a stablecoin pilot programme and enhanced regulation as it seeks to position Trinidad and Tobago as the Caribbean’s leading fintech hub, according to Governor Larry Howai.Speaking at the American Chamber of Commerce of Trinidad and Tobago’s (AMCHAM T&T) Tech Hub Island Summit (THIS) conference at the Hyatt Regency Trinidad in Port of Spain, Howai said the Central Bank is committed to creating “a dynamic, globally competitive fintech industry” while balancing innovation with financial stability and consumer protection.He said the roadmap would include the enactment of new payments legislation, the operationalisation of instant payments, the establishment of a regulatory framework for virtual asset service providers, the full rollout of the Caricom Payments and Settlement System (CAPSS), a regulated stablecoin pilot programme and asset tokenisation initiatives.Howai added that the full implementation of the Data Protection Act would also be critical to the country’s digital financial future.“Our vision for the future of the country is to create a dynamic, globally competitive fintech industry, one that will be the envy of the Caribbean,” he said.However, Howai acknowledged that technology often advances faster than regulation, creating challenges for policymakers. Rather than resisting technological change, he said the Central Bank intends to embrace innovation while ensuring appropriate safeguards are maintained.“We can regulate to accommodate by reaction or we can regulate to innovate, where we position ourselves as a vital part of an ecosystem that incentivises innovation,” he said.He said the Central Bank is moving away from traditional rules-based regulation towards a more flexible, principles-based and risk-focused approach.As work continues on the proposed Payment Systems and Services Bill, the regulator intends to oversee fintech companies based on key risks, including operational resilience, cybersecurity and anti-money laundering compliance, rather than relying solely on rigid regulatory requirements.“This approach marks a departure from traditional rules-based regulation. Our aim will be to adopt a principles-based approach that enables proactive engagement in a rapidly developing ecosystem,” he said.According to the governor, the new framework should help lower barriers to entry, encourage greater competition and reduce the risk of monopolies emerging within the payments sector.He noted that the Central Bank has already begun laying the groundwork for this transition through initiatives such as regulatory sandboxes, which allow innovators to test new products while working alongside regulators.Howai also highlighted the Joint FinTech Steering Committee, which brings together financial regulators to coordinate oversight of emerging technologies.Currently, Trinidad and Tobago has nine licensed payment service providers and six electronic money issuers, with the sector expected to expand significantly in the coming years.While optimistic about fintech’s potential, Howai cautioned that digital transformation must be inclusive and should not leave vulnerable groups behind.He said elderly citizens and people in disadvantaged communities may continue to face challenges in accessing or trusting digital financial services, despite increased smartphone availability.Howai pointed to a cyberattack on Brazil’s instant payment system last year, which resulted in losses of approximately US$152 million and affected multiple financial institutions, as an example of the risks regulators must anticipate.“Our risk-based framework must ensure that public confidence in the payment system is maintained and protected at all times,” he said.The Central Bank has completed stakeholder consultations on its proposed regulatory framework for payment systems and services and plans to continue engaging industry participants as reforms progress.Howai said the transition to a digital payments ecosystem must benefit all segments of society, from street vendors to providers of essential government services.He also acknowledged that regulators will always operate behind innovators but said the Central Bank remains open to feedback from the fintech community.“As a regulator, we’re always behind the curve. I do hope that you see us as being welcoming and accommodative enough that you can speak to us when we fall short. We need the insights because we will always be behind the curve. We are not the innovators, we are the regulators,” said Howai.