While key industrial actors claim that the central currencies of central banks (CBDC) are years or decades ahead, the Bahamas plan to adopt a CBDC by 2020 at the latest.
John Rolle, governor of the Central Bank of the Bahamas (CBOB), has reportedly confirmed that the Bahamian digital dollar initiative will be introduced on all islands in the second half of 2020.
According to a Feb. 13 report from local publication The Tribune, Rolle has presented the plan for an initiative of a Bahamas Chamber of Commerce and Employers Confederation, which is called Project Sand Dollar.
In fact, the Bahamas already rolled out the pilot project at Exuma in December. As such, the CBOB governor stated that the pilot will be extended to the Abaco region, which was originally the first choice for the digital currency pilot. Rolle explained that the CBOB decided to start with Exuma:
“Abaco was actually the first choice for the digital currency pilot. […] But we found that what Abaco missed was that the financial inclusion or the problem of financial access was not so grim in the sense that all banks were present. But in terms of ecosystem it would have been just as rich. “
According to the report, Bahaman’s central bank is still in the process of registering all 1,200 people who have registered for the Exuma pilot. At least 2,000 people have also expressed an interest in participating in the initiative in the region, the report said.
In the report, the governor emphasized that the coming Bahamian dollar will be nothing more than a digital representation of the country’s fiat currency, the Bahamian dollar (BSD). Rolle emphasized:
“We are looking at a digital representation of our currency. It is not another currency; it is the same currency. It will never be different in law. It cannot differ in any way, so Sand Dollars can never be priced differently than Bahamian dollars. “
The governor noted that the Sand Dollar was originally intended for household use only. However, it is also possible that it could be linked to a foreign currency, Rolle reportedly said. The official explained that this could only be done if there was an “explicit purchase and sale of foreign exchange”.
The governor of the CBOB also noted that the Bahamas “may be slightly ahead of some countries” in terms of the timeline. Rolle said:
“We are going to the rest of the Bahamas only in the second half of the year, and that is based on certain things, such as during the pilot looking at many more issues related to technology infrastructure, to ensure that the legal framework is more elaborated around regulations etc. and spends some time dealing with many cyber problems. “
Recently the founder of leading digital currency asset manager Grayscale Investments claimed that Bitcoin (BTC) would benefit from global central banks that issue their own cryptocurrencies.