The launch of the Sand Dollar will be gradual and will divide into two stages, the first of which will be aimed at the private sector. The second phase of national participation will focus on government and public services.
The Bahamas is a tourist destination par excellence with spectacular landscapes, whose beaches receive millions of visitors every year. However, the country has a serious crypto project with which it will finally confirm that digital assets will dominate the world in the coming decades.
The Central Bank of the Bahamas will launch its digital version of the Bahamian dollar nationwide through authorized financial institutions. Previously, they announced that this is no longer a test since the CBDC project Sand Dollar will deepen in 2021.
Gradual Launch
The Central Bank of the Bahamas announced that its launch will be gradual and that the first part will focus on immediate readiness within the private sector. The digital currency will cover the three levels of authorized accounts subject to the proper “KYC” regulations.
Beyond the launch, the strong bet is in the next twelve months. In that time, “engagement and outreach with key private interested parties will intensify, extending until the first quarter of 2021.”
For its part, the second phase of national participation will focus on government and public services. Besides, it will become more intensive in the course of the first and second quarters of 2021, according to the Central Bank’s authorities.
Financial Inclusion
The governors are clear that the possibilities of access to financial development on the islands “are high by international standards.” However, the number of archipelagos makes it difficult for certain citizens to access banking services. That does not affect those living in the capital, Nassau, or in the main tourist sites, but it does affect a small portion of its nearly 400,000 inhabitants.
“The Central Bank is participating in the development of a broader national financial inclusion strategy that would address these problems. Despite this, better access to payment services would provide the conduit to more easily reach other financial services,” they acknowledged.
Strong financial training will accompany the technology strategy to “increase product awareness.” In doing so, “they seek to encourage more positive behavior around personal finances.”
Security Testing
The population was enthusiastic about the CBDC when it was just an idea in the political leadership, but it raised doubts about its security. Given that cryptocurrencies experience hacks and thefts daily; this was an issue to address. The Bahamas believes that it has an initiative that is resistant to any type of attack, based on the tests that it applied to its cybersecurity.
The most prominent features of cryptocurrencies include the fact that transactions are anonymous and difficult to track. For example, Monero manages privacy so well that it is cybercriminal’s digital asset of choice. This feature will not be available in the Sand Dollar.
While the use of paper money is the most anonymous form of payment in the world, this digital cash will pay “strict attention to confidentiality and data protection,” according to the report. It will be easier to track those transactions that could have some kinds of links to money laundering or terrorist financing.
This project would be an example for many other countries that plan to use it but have not developed the platform to do it out. Even though it is far from elite economies, the Bahamas showed its commitment to cryptocurrencies.
By Alexander Salazar
