From October 20, the Central Bank of the Bahamas will begin a gradual launch of its own digital currency called the Sand Dollar. The deployment will take place in two phases.
In the first stage, the private sector will be trained. Banks and credit cooperatives will begin to optimize their systems for KYC and other compliance checks for individual and corporate wallets.
The second phase of the Sand Dollar launch is scheduled for early 2021. It is necessary to prepare municipal enterprises and various government agencies of the Bahamas to use the cryptocurrency of the central bank. The Sand Dollar wallets will be encrypted and will include multi-factor authentication to protect client funds.
The leadership of the Central Bank of the Bahamas warned that the state cryptocurrency does not provide the same level of anonymity for users as compared to ordinary money, but the project will ensure the confidentiality of user data and their protection. Meanwhile, regulations to regulate digital currency in the Bahamas are still being developed. They will be published in October. The ultimate goal of the digital Bahamian dollar is to be used by all residents of the Bahamas through a dedicated platform.
The central bank of the Bahamas began testing the digital currency last December, and the central bank added it to its official annual balance sheet in August . According to this report, the Central Bank issued $ 48,000 worth of Sand Dollar digital currency, which was transferred to several retail stores.