Central Bank of the Bahamas to Launch Own Digital Currency ‘Sand Dollar’
The central bank of the Bahamas (CBOB) has officially announced the launch of a digital currency test pilot in the Exuma district.
The CBOB has been developing a digital currency called the “sand dollar” that was originally planned for a test pilot on the island of Abaco. According to a recent press release, the CBOB will be launching a sand dollar test pilot in the Exuma district with plans to extend the project to Abaco in the first half of 2020.
The regulator hopes the transition to digital currencies will reduce inefficiencies, including the costs associated with cash usage,
Most of the benefits of introducing a digital currency are still unquantifiable. However, they include a potential suppression of economic costs associated with cash usage, and benefits to the Government from improved expenditure and tax administration systems.
It is expected that the Government, as participant and user, would be a strong promoter of digital payments adoption, alongside non-bank payment services providers as the initial lead intermediaries in this space.