The Central Bank of the Bahamas (CBOB) is planning to introduce a digital version of the Bahamian dollar in the Exuma district.
It has been reported that the CBOB is about to launch its digital currency (CBDC) pilot today (December 27), which will extend in the first half of 2020 to Abaco, a group of islands and barrier cays in the northern Bahamas.
However, the digital currency is being developed under the initiative called Project Sand Dollar and will be the Bahamas’ first digital currency. The initiative aims to make access to financial services more efficient and non-discriminatory.
It has been analyzed that in a document outlining how the initiative will operate, the CBOB explained that the digital currency could “reduce the ill effects of cash usage.”
According to the CBOB, the so-called sand dollar would also “effectively strengthen national defenses against money laundering, terrorist financing and other illicit abuses of the financial system.”
The CBOB added:
“Cash usage also imposes physical security risks on businesses and creates more exposure to fraudulent losses relative to electronic point of sales transactions. As it relates to physical safety, a widely adopted CBDC would also place users at less risk of violent crimes that target holders of cash, and potentially reduce security and insurance costs associated with keeping cash on business premises.”
Likewise, in October 2019, John Rolle, the Governor of the CBOB, said during a speech at the Counsellors Limited’s Exuma Business Outlook at Sandals Emerald Bay, that the Bahamas’ digital currency would have the ability to free the country from dependence on cash, which would be particularly useful after a natural disaster.
Thus, he explained:
“It would permit wireless restoration of payments connectivity, avoiding the cash shipment and cash handling frustrations. It would permit electronic dispersing of aid and allow families to recapture personal dignity by restoring the flexibility to prioritize the elements of personal need that they prefer to satisfy post-disasters.”
Source: centralbankbahamas.com | cointelegraph.com