Emtech Advances RegTech and CBDC Stack Solutions with $4 Million Investment Led by Matrix Partners India

Table of Contents

Introduction

Emtech, a New York-based provider of central banking infrastructure, has announced the launch of its Central Bank Digital Currency (CBDC) Innovation Kit. The kit is designed to cater to fintechs and financial service providers interested in experimenting with solutions and business models based on digital currencies pioneered by central banks.

Background

In March 2022, Emtech’s founder, Carmelle Cadet, announced that the company would deploy its first version of a CBDC platform this year. The regulatory sandbox enabled by Emtech’s digital regulatory platform allows for live testing results and enables regulatory bodies to respond to innovations accordingly. Despite initially aiming to work with at least 10 central banks, Emtech is currently working with six, including the Central Banks of Ghana, Senegal, and Zimbabwe.

The CBDC Innovation Kit

Emtech’s CBDC Innovation Kit functions as a simulator accessible through APIs and a ‘bring your app’ framework. Fintechs gain access to a CBDC simulator wallet, Beyond Cash (BYDC), and can extract data from the ledger to test transactions and new business models.

Key Features

Simulated Token: Emtech’s simulated token, BYDC, is used for innovation initiatives, leveraging the Hedera Hashgraph as a layer 1 protocol and the ERC-20 standard for tokenization.
API Access: The CBDC Innovation Kit provides API access, allowing fintechs to integrate with the platform seamlessly.
Bring Your App Framework: Fintechs can bring their own apps to the platform, making it easy to test new business models and transactions.

Benefits

Emtech’s vision of shaping blockchain-powered fintech infra for CBDCs and solutions for fintech regulation may turbocharge financial inclusion in Africa. With the CBDC Innovation Kit, fintechs can:

Test New Business Models: Fintechs can test new business models and transactions using Emtech’s simulated token and API access.
Improve Financial Inclusion: The CBDC Innovation Kit enables fintechs to improve financial inclusion by providing secure, real-time, and seamless digital cash infrastructure.

Investment

Matrix Partners India has invested in Emtech, with Aakash Kumar, principal at Matrix Partners India, stating that "Emtech’s vision of shaping blockchain-powered fintech infra for CBDCs and solutions for fintech regulation is compelling."

Conclusion

The launch of the Central Bank Digital Currency (CBDC) Innovation Kit by Emtech marks an exciting development in the fintech industry. With its ability to improve financial inclusion and provide secure, real-time, and seamless digital cash infrastructure, the kit has the potential to transform the way fintechs operate.