The Central Bank of the Bahamas test a digital version of Bahamian dollar in the Exumas Islands. The pilot project will then be extended to abaco islands and aims to support access to financial services while providing a better response to the management of natural disasters.
This central bank digital currency (CBDC) was developed as part of the project Sand Dollar, launched earlier in 2018. The establishment and use of a digital currency is part of the country’s payment system modernization initiative known as MCH (Payments System Modernization Initiative).
Supported by the government, this digital currency mainly aims to improve financial inclusion “By making the current financial system more efficient and non-discriminatory in accessing financial services,” said the Central Bank of the Bahamas (CBOB).
“Although measures of development and access to financial services in the Bahamas are high by international standards, parts of the population are excluded due to the remoteness of certain communities,” the statement said. of the CBOB.
A useful cryptocurrency to better manage natural disasters
One of the advantages of this CBDC concerns the management of natural hazards. Indeed, use a cryptocurrency would “liberate the country from its dependence on cash,” said bank governor John Rolle recently.
“The test in the Abaco Islands will test features of emergency wireless communications that will allow a rapid return of financial services following natural disasters,” the statement said.