In October, the Central Bank of the Bahamas will unveil its own digital currency (CBDC) named Sand Dollar, Bloomberg reports.
The archipelago comprises more than 700 islands. Residents in the most remote areas cannot access banking services, so authorities decided to create a new and more convenient financial instrument.
A representative of the central bank, Chaozhen Chen, noted that the launch of the CBDC would increase access to the financial system. The Sand Dollar can be used via mobile phones, which 90% of archipelago residents have.
The new token will be subject to AML/KYC procedures and the same controls as traditional currency. The regulator plans to issue new tokens as demand grows and, in parallel, to withdraw fiat dollars from circulation to maintain balance in the market.
In late 2019, the central bank announced the start of testing the digital currency. The regulator said the asset was intended to support stability in the financial sector and to reduce the costs of processing transactions.
In the April report by the Bahamian regulator, researchers discovered evidence of the existence of the digital currency worth $48,000. The coins were issued as part of a pilot project.
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