The Central Bank of the Bahamas was one of the first in the world to introduce its own blockchain-based central bank digital currency (CBDC). The tokens, known as "Sand Dollar", are the digital Bahamian dollar that is issued and regulated by the country's central bank. CBDC is integrated into the payment networks of the Caribbean island nation.
The Bahamas CBDC is designed to complement cash and improve the country's existing payment system. The project Sand claims that the country's payment systems charge negligible transaction fees from users and that the network is secured by high-level encryption protocols and "advanced KYC / AML standards". It is also known about the first six authorized financial institutions that the bank gave the opportunity to make Sand Dollar available to the public: Mobile Assist, Sun Cash, Money Maxx, Cash and Go, Kanoo and Omni Financial Group.
If the Sand Dollar becomes a global currency, the Bahamas will have a first-mover advantage over several larger economies that have been exploring the CBDCs for years. However, the Bahamas cannot guarantee that other countries will be open to using CBDCs, especially given recent reports from countries like Japan and Australia saying they do not see the need to launch CBDC right now.
Image courtesy of Ocean Isle