The Central Bank of The Bahamas (CBB) is initiating legislative measures that will require local commercial banks to support and promote the central bank digital currency (CBDC). Four years after its launch, the Sand Dollar makes up less than 1% of the total currency in circulation in the country.
The Central Bank of The Bahamas is working on a legislative initiative that will oblige local commercial banks to facilitate the distribution of the CBDC. According to Reuters, the new bill aims to overcome the low adoption rate of the Sand Dollar among the population.
According to John Rolle, Governor of the Central Bank of The Bahamas, the Sand Dollar is one of the first CBDCs in the world, yet the adoption rate among the country’s population remains very low nearly four years after its introduction. CBB data says the Sand Dollar accounts for less than 1% of the national currency in circulation in The Bahamas.
Moreover, the total volume of CBDC wallet top-ups significantly decreased, from $49.8 million in the first eight months of 2022 to $12 million for the same period in 2023. Rolle emphasized that the Sand Dollar is of high importance for global financial inclusion and the modernization of the country’s payment system, thus its popularity and circulation level need to be increased.
In this regard, Rolle stated that the CBB intends to implement regulatory rules within the next two years that will require all commercial banks in the country to provide their customers with access to the Sand Dollar. He believes that this approach will stimulate the use of the CBDC and mobile payments in the country.
The Bahamas became one of the first countries in the world to adopt a CBDC as an official means of payment. The digital currency was launched in October 2020. According to the CBDC Tracker, currently, central bank digital currencies are launched in four countries worldwide, with Zimbabwe being the latest. Another 22 CBDC projects are at various stages of pilot testing, including digital currencies in India, China, the UAE, Hong Kong, Turkey, Singapore, Kazakhstan, Qatar, and the European Union.
