Bahamas has taken its pursuit of a national digital currency to the next level, this time including it on its official central bank balance sheet. According to the Central Bank of Bahamas’ annual report for 2019, there was $48,000 worth of its central bank digital currency, the Sand Dollar, in circulation.
In its report, the regulator revealed that the pilot for the new digital currency was launched in Exuma, one of the districts in the Bahamas in December 2019. It later extended to Abaco in February 2020.
“This initiative is expected to provide the country with a modernized, interoperable payments infrastructure, accessible to all residents,” the bank wrote in its report. The Sand Dollar would also allow micro, small and medium-sized enterprises to digitize their payment systems, while also enabling “universal access to banking services; help to reduce unrecorded economic activities; and help suppress money laundering and other illicit activities more easily perpetrated with cash.”