Bahamas To Launch Digital Currency Pilot Project

The pilot digital currency project of the Bahamas is planned to launch on Friday, December 27th. Residents of the Exuma district can register in the “Sand Dollar” project today with the Central Bank of the Bahamas, and receive mobile wallets.

The Central Bank of the Bahamas announced this on Christmas Eve, claiming that the project is a "digital fiat currency" and not a cryptocurrency, a stable coin or a competitor to the Bahamian dollar. It’s just a digital version, “equivalent in every respect to the paper currency” but it’s also a step towards the long-term goal of the Bahamas to create a fully fledged central bank digital currency (CBDC). The Central Bank of the Bahamas believes that this initiative can ultimately reduce the cost of printing currency and transaction fees, while increasing financial inclusion:

“A widely adopted CBDC would 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.”

Currently, businesses will not be able to have more than $1 mln in their digital wallets. Individuals will be permitted to hold a maximum of $500, higher limits are available due to enhanced due diligence” on the accounts. The Central Bank will change limits over time as necessary.

Image courtesy of Coldwell Banker