Bahamas to Allow Residents Pay Taxes With Cryptocurrencies

The government of Bahamas will allow its residents to pay taxes with cryptocurrencies, according to a white paper outlining the nation's digital asset strategy until 2026. In a white paper released on Wednesday, the Bahamas’ Office of the Prime Minister said the government will begin to “enable payment of taxes using digital assets” by working with the country’s central bank as well as the private sector.

"We have a vision to transform The Bahamas into the leading digital asset hub in the Caribbean," said Prime Minister Philip Davis.

In addition, the government also plans to allow its residents to access cryptos using the Bahamas sand dollar, one of the first central bank digital currencies launched in 2020. In October 2020, the Bahamas became the first jurisdiction in the world to fully roll out a CBDC.  The digital currency, the Sand Dollar is aimed at driving greater financial inclusion within the island nation.