Central Bank of Bahamas and its Digital Currency

The Bahamas is a small country that consists of more than 700 islands. As a reminder, the country gained independence from the United Kingdom in 1973. It is worth mentioning that, the total population is less than 400,000 people. Despite its small size, the Bahamas is one of the richest countries in the Americas, in terms of gross domestic product (GDP) per capita. People should take into account that, the local economy is based on tourism as well as offshore finance. Interestingly, the Central Bank of the Bahamas (CBOB) plans to make its central bank digital currency project interoperable on the international level. This is great news not only for the country but other countries as well.

The Bahamas’ digital currency dubbed the “Sand Dollar” should eventually be interoperable with other digital currencies, and it makes sense to achieve this goal. It is worth noting that, at the moment, people are using this digital currency in a domestic setting. However, the Central Bank of the Bahamas is working on a solution. Thanks to this solution, it will be possible to make its digital currency interoperable with other global currencies. 

The Bahamas, digital currency, and new opportunities

As mentioned above, the country’s central bank wants to make its digital currency project interoperable with other digital currencies. It is worth mentioning that, interoperability with other wallets is a key strategy alongside integrating the real-time gross settlement and Automated Clearing House. 

Importantly, this will enable the movement of the “Sand Dollar” to and from user bank accounts. This step will further facilitate fiat conversions.

Interestingly, the API-card less onboarding will be a major component of the national rollout scheduled for October 20. The coronavirus pandemic created a lot of problems around the world. Notably, the process became very important during the coronavirus pandemic. Importantly, it allows users to access the “Sand Dollar” without needing any physical interactions. 

The coronavirus pandemic continues to dominate the headlines for more than 7 months. Moreover, the pandemic is far from being over, and this fact once more underlines the severity of the problem. Also, governments are struggling to cope with problems caused by the pandemic. The Bahamas is a popular tourist destination. However, the coronavirus pandemic decapitated this industry across the globe. Furthermore, it could take several years to return to the pre-coronavirus period. The Central bank made the right decision, as its digital currency project is important for the country.