Onchain Island: Digital Assets as the Cornerstone of Curaçao’s Digital Economy

Since the mainstream emergence of digital assets in 2017, the industry has experienced remarkable growth, expanding from a market capitalization of $20 billion in 2017 to over $2.5 trillion in 2025. This expansion has generated thousands of high-paying remote jobs and opened new capital markets.

Countries such as Argentina, Dubai, Singapore, and El Salvador have embraced the potential of digital assets by integrating them into their national economic strategies. In doing so, they have attracted millions of dollars in annual revenue through startup incubation, trade shows, and financial services, while also providing their citizens with access to cutting-edge fintech innovations.

After more than five years of research and development, Curaçao’s introduction of the Virtual Asset Service Provider (VASP) license marks a significant step toward delivering the regulatory clarity needed for sustainable industry growth. However, a regulatory framework alone is not sufficient. To ensure that the value created by this industry benefits local communities and drives broader societal progress, we must act now to position Curaçao as a global hub for digital assets.

This article—authored by industry veterans Luuk Weber and Niko da Costa Gomez from Kolektivo Labs—presents a vision and roadmap for embedding digital assets at the core of Curaçao’s digital economy, leveraging the island’s unique strengths and strategic location.

Digital Assets as the Foundation of the Digital Economy

The World Economic Forum forecasts that digitally enabled platforms will drive over two-thirds of new value creation in the next decade. Driven by e-commerce, increased technology spending, and cross-border online trade, the global digital economy is projected to reach $16.5 trillion by 2028, accounting for 17% of global GDP.

This digital revolution favors countries that invest in the infrastructure and capabilities required to attract, develop, and support digital economy drivers. Emerging technologies—such as artificial intelligence and blockchain-enabled digital assets—are accelerating the rise of a digitally native economy, lowering traditional barriers to entry and leveling the playing field for global participation.

Digital assets, particularly fiat-backed stablecoins, exemplify the improved access and efficiency enabled by this new financial foundation. In 2024 alone, over $210 billion in digital dollars were issued on blockchains, with stablecoin transaction volume reaching approximately $27.6 trillion, surpassing the combined volume of Visa and Mastercard. Traditional fintech companies and banks are now directly challenged in their core offering: access to financial products.

Globally, more than 30 million people—a 53% increase from 2024—are engaging in financial activities such as payments, savings, and lending on this stablecoin-powered infrastructure. Beyond instant access to U.S. dollars, stablecoins offer unmatched speed and cost advantages. For example, an average stablecoin transaction on the Celo blockchain costs less than one cent & one second to process. In contrast, transferring funds from a local bank to a European one can take days, and international transaction fees can exceed 1.5% on USD payments. These differences highlight the compelling case for the rapid adoption of digital assets.

A Wide Range of Proven Use Cases
Stablecoins and other digital assets empower residents to access financial tools and services previously limited by geography. This on-chain economy supports diverse real-world applications, reshaping global financial systems and contributing to the broader digital economy.

Cross-border Payments and Remittances
Stablecoins enable near-instant, low-cost global transactions, making sending and receiving funds across borders frictionless. This has a profound impact on both individuals and businesses. For companies, it eliminates the need to navigate the slow, expensive legacy financial infrastructure—a common roadblock, with nearly half of SMBs in developed markets citing international payments as a major hurdle to global expansion. 

The benefits are even more tangible for individuals, particularly those sending money to family abroad. Stablecoin transfers can deliver up to 10% more value by avoiding traditional remittance fees, which typically range from 7% to 10%. In Latin America, this shift is already evident: platforms like Bitso processed over $4.3 billion in crypto-powered remittances in 2023, while legacy providers like Western Union saw a 22% drop in app downloads as users shifted to blockchain-based solutions.

Decentralized Finance (DeFi)
The global, open-source nature of blockchain ecosystems has given rise to a wide array of financial products and services that operate transparently and efficiently, powered by code. Leading platforms like Aave (lending) and Uniswap (trading) benefit from the growing adoption of stablecoins, which now account for over 60% of DeFi’s total value locked (TVL).

After a market slowdown in 2022, DeFi’s TVL more than doubled to over $90 billion by mid-2024, largely driven by stablecoin expansion. In 2023 alone, DeFi protocols processed more than $2 trillion in transactions—a 30% increase year over year. This growth reflects a broader democratization of financial access: anyone with an internet connection can now earn interest, borrow capital, or trade assets without relying on traditional financial intermediaries. For Curaçao, this open, stablecoin-powered infrastructure represents a promising opportunity to unlock new forms of economic activity while maintaining monetary stability.

Foreign Exchange Markets
The on-chain economy provides 24/7 access to a broad range of fiat currencies—from USD and EUR to BRL and COP—at a fraction of the traditional cost. Average trading fees for major currency pairs hover around 0.3%, significantly lower than the 1% to 3% typically charged by banks and intermediaries.

Stablecoins also serve as a vital tool for citizens in countries with limited access to foreign currency, enabling them to tap into the stability and global utility of dominant currencies like the U.S. dollar.

Payroll and Wage Distribution
Businesses are increasingly adopting stablecoins for payroll, especially in remote, global, or gig economy contexts. Stablecoins offer instant settlement, reduced fees, and simplified multi-jurisdictional payroll processing, making them attractive to both employers and employees.

As the workforce becomes increasingly global, stablecoins are emerging as a preferred payment method due to their speed and value stability. Companies like Remote now offer USDC payments in over 70 countries, reducing processing times and bypassing the high costs associated with traditional banking systems.

Tokenized Investments and Fractional Ownership
Stablecoins are also facilitating access to tokenized investment opportunities in sectors like real estate, commodities, and art. In emerging markets, even modest stablecoin investments can unlock asset classes that were once accessible only to institutional investors.

Through fractional ownership, individuals can purchase digital representations of traditionally illiquid assets, increasing both accessibility and liquidity. For example, investors in Argentina or Nigeria can use stablecoins to invest as little as $200 in overseas real estate. In some cases, entire property transactions in places like Dubai are completed using stablecoins like USDT.

Digital Commerce and E-commerce Integration
Global merchants are increasingly turning to stablecoins to streamline international payments and reduce friction at checkout. For e-commerce businesses, stablecoin integration significantly lowers cross-border fees, eliminates currency conversion delays, and expands global reach.

Today, stablecoins account for approximately 35.5% of payment transactions on platforms like CoinGate, offering buyers a seamless, low-cost, and borderless payment method.

The opportunity for Curaçao
Digital assets have introduced powerful financial innovations, but their true value lies in the ecosystems and infrastructure being built around them. As this new economy takes shape, Curaçao has the potential to become a trusted hub for digital assets and on-chain finance. Becoming a Digital Asset Hub is more than just a technological upgrade—it’s a strategic leap that can unlock transformational benefits across the island’s economy and society.

The Transformational Benefits:

• High-Paying Jobs: The digital asset sector offers future-proof careers in technology, compliance, legal, and marketing—fields with strong global demand and high remote work potential.
• Business Growth: A clear and supportive regulatory framework can attract founders and developers to build innovative ventures from Curaçao.
• Economic Diversification:  Moving beyond tourism, Curaçao can develop a parallel economy powered by software, fintech, and global digital trade.
• New Revenue Streams: Licensing, taxation, and business activity related to digital finance can significantly boost public finances.
• Stronger Global Brand: As a well-regulated, forward-looking jurisdiction, Curaçao can attract international investors, events, and strategic partnerships.

Learning from leading Digital Asset Hubs
When a new category of infrastructure emerges, so do new opportunities—especially for smaller jurisdictions that act swiftly and adopt digital-first strategies. Curaçao doesn’t need to compete with global giants. Instead, it can win by being agile, innovative, and regulation-forward.

To chart a path forward, we analyzed how five leading digital asset hubs—El Salvador, Argentina, the Cayman Islands, Singapore, and Dubai—have successfully fostered blockchain innovation. The analysis is structured into three key dimensions: Strategy, Key Initiatives, and Outcomes.

Country	Strategy	Key Initiatives	Outcomes
El Salvador	Government-led, wide adoption	First to declare Bitcoin legal tender; global attention from top-down legislation; growing use of stablecoins for daily transactions	+30% growth in tourism post-Bitcoin Law; attracted global fintech investment; expanded financial access via mobile wallets (e.g., Chivo)
Argentina	Government-endorsed, grassroots-driven	Widespread adoption amid inflation; over 60% of on-chain volume in stablecoins (USDT, DAI); supported by local innovation movements (e.g., Crecimiento)	Stablecoins used as an inflation hedge, seamless remittance options, and nurtured one of Latin America’s strongest developer communities.
Cayman Islands	Government-endorsed, offshore-friendly	Fast-track company formation; tax neutrality; strong offshore finance ecosystem supporting DAOs and crypto funds.	Hub for major crypto funds; significant revenue from legal, accounting, and advisory services; retained position as global financial services leader.
Singapore	Government-led, regulation + innovation blend	Balanced regulation; live crypto regulatory sandbox; trusted by stablecoin issuers and fintech leaders.	Home to global players like Circle and Crypto.com; high-skilled job creation, enhanced fintech leadership across Asia.
Dubai	Government-led, adaptive, and innovation-first	Bold branding; rapid regulatory rollout, host of major global crypto conferences, regional HQ for top firms.	Attracted Binance and other Web3 leaders; diversified economy into tech and innovation; boosted investor confidence through agile regulatory response.

Road to Becoming “The Onchain Island”: Curaçao as a Leading Digital Asset Hub

Strategy
While no country can own the infrastructure of the digital economy, Curaçao has the potential to serve as a key facilitator and enabler. To realize this vision, the island must combine regulatory clarity with targeted innovation. Curaçao can foster a trusted environment by aligning efforts across local stakeholders, international partners, and allied governments (including the Kingdom of the Netherlands). This foundation will attract world-class projects and talent, while empowering local businesses and individuals to participate in the global digital economy.

 

Targeted Outcomes
To establish itself as a leading digital asset hub, Curaçao must generate measurable benefits that strengthen both its local economy and international standing. With effective strategy execution, the island can achieve:

 

• Economic Diversification & Job Creation: Create high-paying jobs in blockchain, fintech, legal, and compliance sectors. Diversify Curaçao’s economy beyond tourism by developing new revenue streams in digital finance, technology, and professional services.
• Attracting Foreign Investment: A clear, innovation-friendly regulatory framework will draw digital asset firms, stablecoin issuers, and institutional investors to establish operations in Curaçao.
• Global Reputation & Industry Recognition: Position Curaçao as a trusted offshore jurisdiction through regulatory clarity, sandbox pilots, and partnerships with major blockchain players, including DAOs and crypto funds.
• Financial Inclusion and Resilience: Enable citizens and businesses to access stable, globally recognized financial tools such as stablecoins—reducing remittance costs, improving financial access, and enhancing economic stability.
• Sustainable Revenue Generation: Expand government revenues through digital asset licensing, tax frameworks, and growth in legal and advisory services—ensuring long-term financial health.

Key Initiatives
To establish Curaçao as a globally recognized hub for digital asset business and innovation—Onchain Island—the following initiatives must be implemented across five key pillars: regulation, infrastructure, talent, branding, and adoption.

• Regulatory Expansion & Innovation Enablement: Expand the scope of the VASP framework to include tokenized assets, DeFi products, and Digital Asset taxation. Introduce a regulatory sandbox (inspired by Singapore’s MAS) to pilot innovation safely and build Curaçao’s reputation for clarity and forward-thinking policy.
• Talent Development & Global Attraction: Partner with recognized education providers to offer blockchain and fintech education. Launch bootcamps and crash courses to reskill local developers. Attract international expertise through tailored visa programs for fintech professionals and digital nomads.
• Global Branding & Strategic Partnerships: Position Curaçao as an innovation-friendly jurisdiction by consistently promoting its digital asset strategy worldwide. Establish partnerships and MOUs with industry leaders to strengthen trust and drive investment.
• Grassroots Adoption & Local Acceleration: Encourage stablecoin usage and tokenized solutions for local businesses. Promote crypto literacy and use cases via workshops and build bottom-up adoption inspired by Argentina’s Crecimiento movement.

What’s Next
This report marks the beginning of Curaçao’s journey to becoming a recognized hub for digital asset innovation. To translate this vision into tangible outcomes, we’ve outlined three development phases for the remainder of the year 2025:

Phase 1 (Q2-Q3 2025): Stakeholder Mapping and Vision Shaping
Over the next five weeks, we will engage key local and international stakeholders to better understand their current initiatives and aspirations related to digital assets in Curaçao and the wider Caribbean.

We kindly invite individuals and organizational representatives interested in contributing to the Onchain Island vision to complete the form linked below. This will help us connect, understand your goals, and shape the next steps together.

→ Get involved by Completing the Onchain Island Form (3–5 min)

These conversations will validate and refine this initial report and help launch the Onchain Island Working Group.

Focus Groups
Host 2 focus group sessions with stakeholders to get a better understanding of sector-specific needs. Each session will bring together professionals from a specific industry (e.g., gaming, legal, government) to explore potential use cases, pain points, and participation pathways. 

Stakeholder Interview
Conduct 15–20 interviews with key leaders across banking, finance, fintech, government, legal, and tech sectors. These interviews will help map current initiatives, understand barriers, and surface opportunities for collaboration around digital assets in Curaçao.

Trade Mission Planning – Devconnect Argentina
Prepare a Curaçao delegation for Devconnect Argentina, the largest Ethereum event of the year. This mission will allow Curaçao stakeholders to engage directly with global industry leaders and learn how grassroots innovation and regulatory openness can coexist effectively.

Onchain Introduction: Digital Assets 101 Workshop
Host an in-person workshop covering essential topics in the digital asset space. This session will raise foundational understanding of all stakeholders

Phase 2 (Q4 2025): Year-End Review & Vision Alignment
To close out the year, we will host a flagship business event, “Onchain Curaçao,” to present progress, showcase local use cases, and align on the vision for 2026. This event will also:

• Conduct the planned trade mission to Devconnect Argentina
• Review key wins, roadblocks, and lessons learned from Phase 2
• Highlight Curaçao’s emerging thought leadership and innovation

Outline the 2026 roadmap to strengthen Curaçao’s role as “The Onchain Island”

Conclusion
With a rich legacy in financial services and a strong strategic foundation, Curaçao has a unique opportunity to become a global facilitator in the digital economy.

This is only the first chapter of the Road to Becoming “The Onchain Island”, and we invite you to walk this path with us as we work to unlock the island’s full potential.

→ Get involved by Completing the Onchain Island Form (3–5 min)