To boost the adoption of its central bank digital currency (CBDC), the “Sand Dollar,” the Bahamas has set a two-year timeline to integrate the currency into the operations of commercial banks. John Rolle, the Governor of the Central Bank of The Bahamas, has communicated plans to establish necessary regulations and ensure all commercial banks provide access to the CBDC for their clients.
Bahamas Banks to Adopt CBDC in Two Years
The central bank’s approach aims to transition from encouraging to mandating the use of the Sand Dollar across banking platforms. Commercial banks must adjust their IT systems to accommodate the new requirements as the integration progresses. These adjustments are crucial for facilitating the broader use of CBDCs and enhancing mobile payment systems in the country. Despite the technical challenges, the shift is essential for modernizing financial transactions and improving the digital economy’s infrastructure.
The adoption rate of the Sand Dollar has been underwhelming, with statistics indicating that it constitutes less than 1% of the total currency in circulation within the nation. From August 2022 to August 2023, wallet top-ups notably decreased, from $49.8 million to $12 million. This stark decline has pushed the central bank to move from voluntary uptake to compulsory incorporation of digital currency.
