When we talk about Central Bank Digital Currency (CBDC), China will be the first on the list. Cryptocurrency world is experiencing its best years. Many governments are legalizing crypto as a medium of exchange, commodity or security. Meanwhile, many of them are trying to launch their own CBDC. In the latest news, the Bahamas will launch its own CBDC in October.
Bahamas will launch its CBDC in October; many people don’t have access to banking system and infrastructure
The Bahamas Central Bank aimed to launch the first country stated-backed virtual currency in the coming next month. Chaozhen Chen explained in his interview that the new CBDC will drive greater financial coverage among all the islands within the archipelago nation. They named the new currency “Sand Dollars”.
He mentioned that most of the population who is living on those islands, not only don’t have access to digital payment network but also banking infrastructure. He added that Bahamas really needs a solution to those above issues in order to be the sovereign of the nations.
The Bahamas CBDC will regulate same as Bahama Dollar
Bahamas citizens can transfer Sand Dollars using mobile phones. Statistics show that around 90% of the Bahamian citizens using mobile phones since 2017.
Chen noted Bahamas government regulated the new CBDC same as Bahama dollar. However, all the users should complete the procedure of Anti-Money Laundering (AML) and Know Your Customer (KYC) before useing the currency.
The supply of the new digital dollars depends on the demand. In fact, the CBDC is coming to retire the Bahamian dollar and have a positive impact on monetary supply.
The “Project Sand Dollar” pilot, launched by the government last year. The test implemented in a small island such as Abaco and Exuma, which have 17,224 and 7,314 citizens.
The Sand Dollar is pegged to Bahamian dollar, which is pegged to U.S. dollar. 48000 Sand Dollars issued during the pilot test so far and the project could gain a massive success.