Publications
Publications
- November 2023
- HBS Case Collection
Will Fintechs and Central Banks Play in Emtech's Sandbox?
By: Daniel Isenberg and William R. Kerr
Abstract
In February 2023, Emtech’s founder Carmelle Cadet is facing a dilemma. Rapidly running out of cash, Cadet has a term sheet from a leading VC but has a choice of how to structure the investment. The decision will have significant implications for Cadet’s own stake, as well as her ability to attract top talent. One factor influencing Cadet’s decision is her vision of creating a digital currency platform that will facilitate financial inclusion and other values throughout the world. Founded in 2018, Emtech first offered central bank digital currencies to world governments, digital fiat currencies that could be a tool for emerging economies to offer benefits and administer social programs more efficiently. The company later began developing regulatory sandboxes, which allow governments and fintechs to experiment to optimize regulatory environments, while working with financial service providers on innovation and regulation of new products.
Keywords
Cryptocurrency; Business Startups; Venture Capital; Cash Flow; Currency; Governing Rules, Regulations, and Reforms; Digital Platforms
Citation
Isenberg, Daniel, and William R. Kerr. "Will Fintechs and Central Banks Play in Emtech's Sandbox?" Harvard Business School Case 824-096, November 2023.