Why Puerto Rico could be the next international finance hub
2 minute read
29 Jun 2022
When you think of Puerto Rico, you immediately think of endless beaches, tropical waves, the beat of reggaeton, and barbeques. Perhaps you don’t think about it being a potential global financial hub. However, its Caribbean location means it’s perfectly placed to potentially rival international money centers such as Singapore, Switzerland, and Hong Kong.
US banking without restrictions
Puerto Rico is a unique case. As a commonwealth country under the US’ jurisdiction, Puerto Rico operates in US dollars (USD). This means that via Act 273, Puerto Rico can offer USD to the rest of the world, so that people can take advantage of the currency’s stability.
Strategically speaking, the island is in the perfect location as it is a bridge between the USA and Latin America. Additionally, the fact that a vast majority of the island is bilingual in both English and Spanish – the most spoken and the fourth most spoken languages respectively – means that Puerto Rico could open the doors for people in LatAm to access a stable currency such as USD. An idea that is gaining popularity in this region.
Puerto Rico is protected by being under the US’ umbrella, which includes access to the US market and credit rating. However, it benefits from independent regulations for International Financial Entities (IFEs). With all of this in mind, it makes sense that more and more financial institutions are beginning to recognise Puerto Rico as a global financial hub.
Why we chose to bank in Puerto Rico
Zenus Bank saw the potential in Puerto Rico due to its location as well as the several benefits outlined above. Allowing us to become the first bank in Puerto Rico to operate a full reserve banking model and actively compete with banks in America.
We also saw the benefit in employing Puerto Ricans on the ground as they are multilingual and can help Zenus Bank members from all over the world. Their experience and local knowledge are invaluable to us as they know how to navigate local financial rules and regulations.
Furthermore, as a territory of the US, Puerto Rico has fantastic infrastructure and a well-developed financial district in San Juan.
We also believe that banking should go beyond borders, and Puerto Rico’s unique laws make it the perfect place to conduct international business. As the rules and regulations are primed to allow cash to flow freely, we can deliver our services to our members in over 150 countries in a quick, secure, and efficient way.
Puerto Rico’s proximity to the US and LatAm makes it the perfect country for Zenus Bank, as we are particularly focused on the LatAm region and empowering people within it via borderless banking.