Barbados-born Gabriel Abed is the founder of Bitt, a home-grown tech company that aspires to deliver technology innovation accompanied by social inclusion within the financial arena. With the aim of building a business of which all Barbadians — and Caribbeans — could be proud, the story of Gabriel’s journey, from the earliest days of his business career to today, is one that has involved many twists and turns, and lately a lot of triumphs.
2018 saw Overstock’s Medici Ventures invest US$ 3mn in Bitt, following an earlier capital injection in 2016 of US$ 4mn. Then this year brought news of Bitt’s partnership with the Eastern Caribbean Central Bank (ECCB) in developing a blockchain-based digital currency.
Abed is renowned throughout the Caribbean for his impassioned and candid approach to business. STAR Businessweek correspondent Ed Kennedy spoke with Abed about his journey with Bitt, what he feels Caribbean governments should concentrate on in order to encourage business, and his future plans.
STAR: What were the advantages and challenges of starting Bitt in Barbados?
Abed: Well, to be blunt, starting Bitt in my native nation wasn’t an advantage at the time; it was almost the opposite, but I did have the right attitude and passion. So, even though there was really so little in the way of suitable technology and support then, I knew that if I was going to build a business like Bitt, it had to be in Barbados.
I know others were saying: “Oh, you can’t do a business like this in Barbados,” that it’d be safer to start it in Canada or Mexico and so on, but I felt it had to be here. And I still feel it has to be here. My employees are all from here or have relocated to here. I know in some ways it’s passion beyond reason, but it was about Barbadian pride, and pride in being from the Caribbean.
In the early days I was often ignored at conferences because I was from the Caribbean. That bugged me and I wanted to prove things could be different. That’s why I never listened when I was told we couldn’t, or wouldn’t, get it done building this business – and here we are today!
STAR: What do you feel is the most concrete explanation of Bitt’s value?
Abed:Quite simply the current banking infrastructure isn’t inclusive or open. There’s no democratic payment system that exists. Bitt created an easy-to-use application that works with local monetary systems, helping the unbanked and underbanked members of our society gain access to a digital financial network for payments, and to send and receive funds domestically.
It’s just not right that people don’t have access to banking networks. They miss out on critical financial services. It’s horrible, it’s not right, and we have to do better. Bitt fills a void in the market and also serves people most in need. Once you have a smartphone and Bitt, you have access to control your own finances. That’s the simplest way I can describe it.
STAR: For anyone seeking to follow in your footsteps, to what extent do you feel the landscape has changed and what expertise is essential to building a successful business in the space?
Abed: I’d just simply say to anyone starting today: “Build it and they will come.” There wasn’t much beauty in Bitt’s early days. There was rawness, doubt and uncertainty; and it was rough! Every day posed significant challenges and, to be candid, we still have to overcome obstacles, even today. I didn’t have a background in finance and, despite these difficulties and challenges, I’m now disrupting financial markets! So I say: “Don’t think. Do it! Just get it done.” Failure isn’t a bad thing; it becomes a lesson.
Bit Edge Technologies, in and of itself, was not a resounding success. I’ve tried five to six businesses before Bitt which were unsuccessful. I know some may argue whether it was my fault or actually just market conditions but, to my mind, I failed them. But I also succeeded with Bitt. I think both failure and success is a common part of every entrepreneur’s story, and you learn from both. So I say: “Never delay that learning.”
STAR: What’s the greatest liability you see right now for the world of cryptocurrency and blockchain going forward?
Abed: One of our biggest liabilities is the lack of education, and allowing myths and innuendo to win the day. This is a tragedy as the positives are huge. We have never had an immutable data system before; we have that now. This is just one example of many where considerable positive change is right around the corner. This means solutions now exist that, in the past, were never possible. We need to do a better job of calling out claims that are simply untrue.
Another huge liability is the lack of real understanding and subject expertise among legislators and regulators who think we’re only out to cause havoc. It’s the opposite. These technologies offer a solution that can save us from many currently growing problems we have with centralisation. But it takes courage and clear eyes to get the solution in place and you can only work towards a solution when you have a real understanding of how to get there. So I’d want to see more decision-makers have an open mind and build their deeper understanding of the field.
STAR: Aside from your current work, what other areas of the financial infrastructure are you eyeing?
Abed: Well, I think the next focus for me is stock exchanges and security exchanges in the short term. In the long term, I’d like to drive a rethink in the governance process; to disrupt hierarchical humans. The frailty of man is flawed in the highest centralisation. We have to find a way to remove the flaws of people from the centralisation of society and the state-based sources – to find direct democracy. I want to drive forward on that one day. So, I want to optimise governance but remove the politician from it; to return greater “power to the people”. Right now though, that’s a long way down the line, but making systems more fair and efficient is something I’ll always be interested in within the private and public sector.
STAR: By its nature, cryptocurrency can be borderless. What extent do you feel there’s potential for the Caribbean to develop its own identity as a hub for cryptocurrency?
Abed: I think it boils down to government. Regional governments need to provide the support. Potential compared to outcomes can be very different – one needs to only look at the experiences of Liechtenstein, Malta, Bermuda, Mauritius. There’s no ‘one size fits all’ approach to cryptocurrency but there are common factors among nations that see it thrive.
Governments must be proactive, listen to the market and provide the climate for disruption to thrive; to embrace local and international entrepreneurs. The problem is, many of our governments are so overwhelmed with their daily concerns and underfunded while managing difficult economies. They aren’t really thinking about the future but instead are thinking only about the issues of today. I totally understand this, but ultimately they must understand we need them to create an environment to facilitate innovation.
Innovation in this space can deliver immense benefits, not only to business and entrepreneurs, but to everyone across all aspects of society. Best of all, if you implement it today, you can begin to see results rapidly that can help fix some of today’s most pressing problems. That’s the power of crypto and blockchain.
