June 19, 2024

Bahamas launches digital version of Bahamian dollar

Bahamas launches digital version of Bahamian dollar

The Central Bank of the Bahamas has begun testing a digital version of the Bahamian Sand Dollar.According to the official announcement of the regulator, in a pilot mode the project will be launched on December 27 in the Exuma area, and in the first half of next year, the Abako area will be added to it.

According to local authorities, the conversion of the national currency into digital form will make the functioning of the financial system more efficient:

“Among the benefits of digital currency are the potential reduction in economic costs associated with the use of cash and the improvement of the tax system.”

In addition, the central bank is confident thatafter digitalizing fiat currency, it will be easier for them to combat money laundering, terrorist financing and other abuses in the financial system.

“It is expected that the state will take an active role in the distribution of digital payments, as well as non-bank payment service providers, which are the primary intermediaries in this space,– the publication says.

As the pilot project at Exum developsthe central bank will simultaneously contribute to the creation of new regulatory requirements for digital currency, to strengthen consumer protection, and, in particular, data protection standards. ”

The fact that the Bahamas are planning to releasedigital currency, it became known in the summer of 2018. The International Monetary Fund has expressed certain expectations that the Bahamas, among other states, will begin testing its national digital currency in the near future.