The Bahama digital currency or the pilot project went live in Exuma on Friday, December 27, 2019. Right now, the people of Exuma Island have an added advantage as they can easily access this service in the central bank. This pilot project is also known as Sand Dollar.
The Bahama central bank will also give the residents mobile wallets that the government considers as the near future payment facility on the island chain. The central bank provided this report on Christmas evening.
The central bank emphasized that the Sand Dollar is not a stable coin. It also noted that it is not a competitor to the Bahama Dollar, but it is a digital fiat currency. However, Sand Dollar is just an equivalent version of paper currency in every aspect.
As outlined very clearly in the Sand Dollar project, the central bank will first have to conduct a pilot phase in Exuma, and then it will extend to other areas such as Abaco in the year 2020. Project Sand Dollar is an extension of the system modernization project that started in the year 2000.
The Bahamian payments system modernization initiative (PSMI) was intended to improve the efficiency of the domestic payment system. The Bahamian payments system modernization initiative also has reduced the issue of discrimination to access financial services.
Project Sand Dollar is intended to eliminate the issue of not accessing the bank services with ease, a challenge experienced by many remote communities.
As recent documented, the central bank is conducting a campaign on creating awareness and knowledge about responsible financial behavior and education to the communities. The Bahamas has long-term goal of launching a fully pledged CBDC, which is also named as Sand Dollar. This massive project will connect residents and businesses across all digital payments infrastructure.
The residents will be able now to pay business and other shareholders through linked QR codes with banks that accept many in digital form. The central bank will cut a high cost of printing paper currency.
The Bahamian residents will benefit primarily on this project since they will be less exposed to the risk of violent crimes that result in holding substantial cash. However, the project Sand Dollar is facing restrictive limits from the government. These limits include no business will be allowed to keep more than one million dollars in their digital wallets; also, no company will transact more than one-eighth of their annual business earning every single month.
This post was originally published on Food and Beverage Herald