The Central Bank of Bahamas has announced that it’s going to launch its digital currency in the second quarter of this year. When launched it would become one of the first digital currencies along with China’s plot to launch its digital Yuan.
The project is called Sand Dollar and is currently passing through its pilot face in the Exuma district in the Bahamas. After the pilot process which is expected to go on from January to March, the final stage will begin in the second quarter of the year.
The Central Bank said it intends to use the launch of the digital currency to attract other citizens who are residing where they are unable to effectively reach physical banking services. It also stated that the country’s digital currency would improve digital transactions, which would boost the country’s dependable tourism sector.
The digital currency will have the same value as BSD
The Central Bank says the digital currency, once launched, would carry the same value as the Bahamian dollars. Presently, the country’s fiat currency has the same value as the US dollars when compared side by side. That means that one Bahamian dollar (BSD1) is equivalent to one USD.
Reason for picking Exuma as the pilot center
Bahamas’ Central Bank is continuing its payment system policy, which started in the early 2000s. According to the bank, the pilot of the digital currency was set at Exuma due to the willingness of the city’s residents to use more than one digital platform. It was also because of the high level of access to mobile devices in the region.
Apart from the acceptance for more digital currency options, the central bank also pointed out that the Bahamas is ripe for the introduction of the digital currency because of other variables.
It stated that it has strong standards for fighting the financing of terrorism as well as anti-money laundering. It also stated that there are more stringent “know your customer” systems that were established to maintain some international relationships the bank holds with some other central banks.
Bahamas economy picking up after Hurricane Dorian
The economy of Bahamas suffered a bit of slum after the Hurricane Dorian incident last year. The introduction of digital currency in the Bahamas will further strengthen the transaction and financial flow in the economy, which would be needed to carry out necessary financial infrastructure repairs.
The Central Bank of Bahamas said it has carried out enough research on the benefits of introducing its digital currency in the country.