Bahamas is planning to issue its cryptocurrency for the next year through its Central Bank. The digital currency will be named Sand Dollar.
Dorian, the recent hurricane that caused dozens of deaths and enormous damage in Bahamas, generated more financial problems in the island. In this sense, the Government is looking for new tools or opportunities to overcome some obstacles.
Recently, the Central Bank of the Bahamas (CBOB) announced its plans to launch its own digital currency. This would help solve some problems, especially in the most affected regions.
“The plan is for Abako to join the Sand Dollar project as soon as possible”, John Rolle, CBOB Governor explained.
According to the official, digital currencies and the technology related to them could enable a country to make its economy more sustainable. It will also help restore the loss of approximately USD 7 billion pf loses the hurricane generated.
The name of this digital currency, which would be the first one in this country, is Sand Dollar. Local news reported that it will be based on legal tender and will be supported by its own online wallet and payment card, to offer the users facilities to make payments with the cryptocurrency when it is available.
As a first step in the development of the digital currency, this asset will be tested before the end of the current year. Something very soon and important to the previous results.
When Will It Be Ready?
In this way, the currency will arrive in 2020. The local newspaper The Nassau Guardian reported that the CBOB is working on a “evolved payment structure”, with the final objective to put its digital currency on the market.
To achieve its goal, the CBOB will sign a partnership with NZIA, which should be responsible for the design and implementation of the Sand Dollar project.
NZIA will be a provider of technology solutions for CBOB, according to what the financial institution informed last March.
The new digital currency will be an “integrated and cost-effective electronic payment system for all businesses and residents”, as the financial institution explained.
Banking services are often limited in remote regions of the Bahamas; thus, Sand Dollar would be an additional and legal form of payment to benefit to more communities of the country. Also, it would be another step to development.
In addition, the central bank of the Bahamas will ensure that the nation’s economy remains stable if another natural disaster hits the island.
Also, the digital currency will free the Bahamas from its dependence on physical fiat money, particularly cash.
“It would permit wireless restoration of payments, avoiding the cash shipment and cash handling frustrations. It would permit electronic dispersing of aid and follow families to recapture personal dignity by restoring the flexibility to prioritize the elements of a personal need that they prefer to satisfy post-disasters”, Rolled said.
There are some problems that may last for weeks and even months, like physical damage to banks so having a digital tool could be another positive option for citizens in these cases.
“Bitcoin transactions can be made over alternative low-bandwidth transport layers like mesh radios and SMS”, blockchain developer at Global Mesh Labs Richard Myers said.
Cryptocurrencies would have a strong and positive potential in the Bahamas. It will also ease the dependence on the US dollar and will bring new alternatives for citizens. It will be the country’s first fiat-based digital currency and support if another natural disaster is registered.
By María Rodríguez