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The Central Bank of the Bahamas expressed digital currency plans

Oct 29, 2019

It is very likely that soon Bahamians will have their own digital currency. The Central Bank of the Bahamas disclosed the plans to issue their own electronic money and establish digital currency as a legal tender.

According to the Central Bank, introducing the cryptocurrency will be a valuable input for handling economic issues. It will be the blockchain-based digital fiat currency dubbed “Sand Dollar” developed to boost the stability and resilience of the country’s economy. “Sand Dollar” will be made available in the form of a digital wallet which will be easily accessed by a smartphone.

The biggest problem for the economy and banking industry of the Bahamas are natural disasters. Every year massive hurricanes pass close to the territory of the country bringing severe destructions. The most recent one, Hurricane Dorian did over $7 billion in damage to the Bahamas.

Such natural disasters particularly affect the financial industry which is not free from cash dependency. The cash dependency impedes the recovery process and markedly troubles the banking industry operations which leads to cash losses and bank closures.

The Central Bank announced that the cryptocurrency is the best solution that will facilitate disaster recovery. Officials believe that switching to digital money will consolidate the resilience of the financial system in emergency situations. “Sand Dollar” will permit wireless restoration of payments, allow electronic dispersing of aid and avoid complications associated with cash shipments. Moreover, crypto transactions are more efficient and less costly comparing to a hard currency.

The authorities of the Bahamas are aimed to develop a reliable payment system so the citizens and businesses wouldn’t have issues even in the event of a natural disaster. Indeed, when the difficulties with a hard currency arise, the digital currency may be helpful in purchasing necessary resources.

The Central Bank of the Bahamas announced that the “Sand Dollar” will be developed before the end of 2019.

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