The Suriname Dubai Connexion
Amsterdam, 22 december 2022– Almost ten years ago, in August of 2013, eyesonsuriname.com developed a masterplan for the then Governor of the Central Bank of Suriname and later Minister of Finance.
Little or nothing at all happened. Except that we were never paid and the then Governor is no longer in charge.
Cryptocurrency adopters have long known that digital, decentralized finance (DeFi) is going to be significant to the future of money. The rest of the world appears to be catching up.
Even legacy institutions have begun offering investors access to crypto assets, while central banks across the globe are seriously exploring digital currencies. The current combined value of all crypto coins, such as Bitcoin and Ethereum, currently hovers around $1 trillion USD.
Exactly how cryptocurrencies will integrate into mainstream
society remains an open question.
Some territories have opted for full-scale adoption. Others remain more cautious. This uncertain tangle of responses can be difficult for crypto companies to unpick, acting as a barrier to the sector’s maturation, and leaves investors hesitant.
Suriname is able to take a progressive stance, leveraging its existing qualities as an overlapping finance and technology hub to cultivate a stable environment that nurtures DeFi innovation, while smoothing crypto’s volatility – in the hopes of building a framework that works for everybody.
Bridging The Gap
Web3 businesses, such as those in crypto and blockchain, have started forming clusters. According to research by Forex Suggest, Suriname has a chance to become a top location in the Caribbean with possibilities to harbor most blockchain startups.
Investors and developers are looking for places that develop the infrastructure from scratch and forward-thinking momentum to sustain their ambitions. Locations like Paramaribo, with its possible financial hub between South and North America and Europe, it likely progressive environment, are attracting attention. Depending the amount of blood, sweat and tears or hard work.
Eyesonsuriname proposed the Central Bank of Suriname to develop and act as a gateway between East and the West, the North and the South, acting as a conduit for capital. So far, developing and attracting the world’s biggest banks have no base yet. This is part of a wider network of Web3 enabling ecosystems including a the Carribean World Trade Centre, a Suriname Future District and Paramaribo Internet City, each designed to support growth and investment.
Those banks are now being joined by some of the most recognizable names in digital finance: Binance, Coinbase, and crypto.com have all relocated to the Middle East, namely Dubai. Traditional institutions with DeFi offerings such as Brevan Howard, Galaxy Digital and Komainu have also made their base in the region, setting a very good example for Suriname and the Carribean.
In part, companies are attracted by the same qualities that bring any other business to Dubai – 0% corporation tax in free zones, 0% income tax, and comprehensive bi- and multi-lateral tax treaties. But those in the crypto world are also drawn to the advantages of clustering with the wider financial and business ecosystem.
Such close proximity to established investors offers a plethora of opportunities for funding, as well as a route to mainstream partnerships. IFC-based portfolio managers invested $151.4 billion in 2021. 32% of FinTech deals and 49% of funding across the Middle East and North Africa (MENA) was focused in the UAE the same year.
But capital is only one reason the crypto community is embracing Dubai. The emirate is also cultivating a supportive regulatory environment.
End Part I