Bahamas Mandates Bank Access to Sand Dollar CBDC

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As a crypto investor with a keen interest in central bank digital currencies (CBDCs), I’ve been closely following the developments in the Bahamian economy regarding their CBDC, the Sand Dollar. The recent announcement that commercial banks will be mandated to facilitate access to the Sand Dollar within two years is an intriguing move, given the current low adoption rate of just under 1%.

The Central Bank of The Bahamas is planning to implement new rules requiring commercial banks to help customers access its central bank digital currency, named Sand Dollar, which was introduced in 2020 but yet to be widely used. According to the Central Bank Governor John Rolle, this move aims to promote the adoption and continued usage of the digital currency.

Although leading the way in introducing a Central Bank Digital Currency (CBDC), the Bahamas have noticed that the Sand Dollar accounts for under 1% of the country’s total currency in circulation. Recent data shows a substantial decline in wallet refills, with $49.8 million in the previous year contrasting to only $12 million during the past 8 months.

In the near future, banks will be mandated to incorporate the Sand Dollar into their systems, giving them a maximum of two years for compliance. Countries such as Nigeria and Jamaica have previously faced comparable hurdles when implementing Central Bank Digital Currencies (CBDCs).

In contrast to nations such as India, which offer incentives through cash-backs when using digital currencies, and Israel, which has proposed regulating interest rates for holding Central Bank Digital Currencies (CBDCs), the Bahamian method takes a distinct form.

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2024-07-02 04:36