Bahamas Central Bank Confirms Intent to Use a CBDC

In comments referring to efforts at resilience in coping with the Caribbean region's periodic natural disasters, Central Bank of the Bahamas governor, John Rolle, explained how the use of a fiat-based Central Bank Digital Currency (CBDC) could help affected residents through expeditious payments restoration. The Abaco Islands, which recently experienced extensive and devastating physical damage resulting from Hurrican Dorian, may be one of the first areas to see early implementation of a new wireless payment system through "Project Sand Dollar" - the name for the Bank's payment system modernisation initiative.

The Central Bank also hopes that the use of a CBDC, which optimally integrates well into anti-money laundering and know your customer (AML/KYC) applications, will help reduce the dependency and preference of Island residents for use of physical cash.

The Bank signed a contract with NZIA Limited in May 2019 to "design and implement a digital version of the Bahamian dollar."

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