Recently, the Central Bank of Bahamas announced the launch of its digital currency on December 27, 2019, in Exuma. The name of the digital currency will be Sand Dollar.
After many years, this decision is taken place by the Bahamian Payments System Modernization Initiative (PSMI) in the early 2000s. The bank aimed to start the Central Bank Digital Currency (CBDC). The sand dollar will also be released in Abaco in the first half of 2020 after introducing in Exuma.
The bank convinced that this digital currency is not a cryptocurrency or stablecoin, but it is the digital value of an existing paper currency. The aim is to help people in smooth transactions without accessing the bank physically.
Currently, the Bahamas bank is working on the services so that every person can access it and streamline everything quickly. In the process, the payments system will accelerate, and new categories will be added for financial service providers, and every person will access traditional banking services via digital payments infrastructure.
The sand dollar comes with limits. The process involves boosting the process of residents paying retailers via QR codes in their mobile phones. Now, there should not be more than $1 million in the digital accounts of the people and businesses. One can withdraw a maximum amount of $500 at a time.
The government of Bahamas will enjoy the reduced costs as well as fast digital transactions. Therefore, many people are supporting this service. As the project will introduce in Exuma, the bank is working on consumer protection by enacting rules and regulations.