The project – which will be formally announced next month – follows a European precedent and could help drive innovation in smaller markets which lack scale, says Diego Herrera, lead specialist for financial markets at the IDB. The multi-jurisdictional regulatory sandbox would facilitate cooperation and allow participating regulators to share information, increase their understanding of local and neighboring ecosystems, and even take joint supervisory actions for businesses that operate in multiple countries. Presently, Mexico, Colombia, Brazil, and Peru have specific regulations for fintech “sandboxes” – test environments for the finance sector. Meanwhile, 70% of fintech platforms have some form of interaction with other countries in the region, according to the IDB. This indicates a need to help connect the innovation found throughout the region.

https://iupana.com/2021/03/08/exclusive-idb-pan-latam-fintech-sandbox/?lang=en