The Bahamas are on the verge of becoming the first nation in the world to introduce a state-backed digital currency. The Bahamas Central Bank announced that it would issue a central bank-backed cryptocurrency (CBDC) next month.
Chaozhen Chen, the Central Bank of Bahamas assistant manager in charge of eSolutions, said that the virtual currency, known as ‘Sand Dollar,’ is set to enhance financial inclusion, especially the isolated islands within the country.
Chen explained that most people on those isolated islands have no access to banking and digital payment infrastructure. Based on reasoning that the central bank came up with a customized solution that will solve the problem while allowing the country to maintain its sovereignty.
The Sand Dollar transfers will be made using a mobile-based wallet app on users’ phones which will be much easier since more than 90% of the citizens use a mobile phone.