Bahamas central bank is planning to launch its national cryptocurrency by the next month i.e. October 2020. With this launch, Bahamas will become the first country in the world to launch the virtual currency which is backed by state, across the nation.
Chaozhen Chen, assistant manager of eSolutions at Bahamas central bank has said that this digital currency which is named “Sand Dollars” will help drive a huge financial inclusion from all the remote islands across the nation. He said that most of the people from these remote islands were not having access to any kind of digital payment facility. To provide them with these solutions, the bank will have to put a lot of effort into this.
Digital Currency by Bahamas Central Bank Comes Under Same Regulations
It is revealed that Sand Dollar payments will be made using mobile phones only. This will be of great success as by 2017, around 90% of the Bahamian population was using mobile phones. According to Chen, the digital currency by Bahamas central bank will also come under the same regulation as Bahama dollar. There will also be both anti-money laundering and know-your-customer protection with this digital currency.
It has been seen that there was a huge demand for CBDC across the nation and due to this, the demand for digital dollars is also increasing.
Project Sand Dollar Pilot was Launched Last Year
Bahamas central bank had announced its desire to launch its CBDC, back in June 2018. The government had launched the pilot for Project Sand Dollar the previous year. With this pilot, they had been testing its CBDC on several small islands across the nation. This is to be noted that each of these Sand Dollar is pegged to the Bahamian Dollar and it had been seen that this pilot project by the government turned out to be of a great success.