Bahamas sets release date for Sand Dollar digital currency

The Central Bank of the Bahamas will begin a gradual rollout of its own digital currency (CBDC) named the Sand Dollar on 20 October. This is stated in the regulator’s press release.

The payment-system modernization project is divided into two stages: the first envisages private-sector preparations, the second—government infrastructure. The authorities expect to begin the latter in early 2021.

At present, one commercial bank, three payment-service providers and four money-transfer systems have been authorised.

“They can offer the Sand Dollar either through their own apps or through the Sand Dollar universal app,” the regulator said.

Six more market participants are undergoing checks. The Sand Dollar platform itself has undergone an audit. The project does not foresee user anonymity for the CBDC, but adheres strictly to privacy and data-protection rules.

The regulator expects that the shift to the digital currency will lower service costs, boost operational efficiency and overall financial inclusion.

Sand Dollar will apply AML/KYC procedures and the same controls as those applied to traditional currency. The Central Bank of the Bahamas plans to issue tokens as demand grows and to withdraw fiat to maintain market balance.

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