The Bahamas Moves Towards Commercial Roll Out Of A Digital Currency

By  newsamericas 

bahamas-sand-dollar

News Americas, NEW YORK, NY, Tues. March 30, 2021: Another Caribbean country is moving closer to a commercial rolling out of its own digital currency this year.

The Central Bank of The Bahamas says it has developed and circulated draft Regulations for the commercial roll out in May of its digital currency, The Sand Dollar.     

The draft regulations are intended to enhance the existing legislative framework governing Payment Services Providers (PSPs), specific to their provision of central bank digital currency (CBDC) linked services.

These include specific obligations to safeguard the security of the financial market infrastructure, affirmed obligations around the financial integrity (AML/CFT) of digital currency transactions, and intensive focus on financial inclusion and consumer protection.

After the consultation period closed, March 31, 2021, the Bank says it will finalize the Regulations for issuance by May 1, 2021.

The Central Bank began the gradual national release of the Bahamian digital currency in October 2020. Since then, participating financial institutions have worked to integrate their proprietary mobile applications (apps) to the Sand Dollar infrastructure. As of mid-March, nine PSPs – the Authorized Financial Institutions (AFIs) – have completed cybersecurity assessments of their technology systems and have been cleared to distribute the CBDC. They are: four money transmission businesses (MTBs), three payment services institutions, one commercial bank, and one credit union. These institutions are either enabled to offer Sand Dollars through their proprietary mobile wallets or through the Central Bank developed app.

The Central Bank is working with PSPs to achieve the interoperability of all proprietary mobile apps. Interoperability means that businesses and individuals would be able to send and receive funds with any other digital wallet once the transaction is in Sand Dollars. Payment providers that adopted the Central Bank app already satisfy interoperability, while institutions that are using proprietary apps are expected to meet a deadline of March 31, 2021.

The Central Bank expects to imminently complete the technical integration of the digital infrastructure with the commercial banking system. This will establish links between wallets and bank deposit accounts, through the Bahamas Automated Clearing House (the ACH), and allow transfer of funds in both directions. As participants in the ACH, commercial banks also play a direct role, as the respective online wire transfer platforms are being updated to accommodate these transactions. The ACH has established protocols to be followed for such updates.

Guyanese Online Note on Digital Currency

Many Central Banks are now issuing Digital Currency rather than only using printed notes. It is expected that this trend will spread rapidly, especially after the economic disruptions caused by the “epidemic”. For instance, within the Caribbean, the eight OECS member countries, through their Central Bank, will be issuing “D Cash” or digital dollars shortly. ( see following article on this website)

Caribbean: OECS Central Bank – Get Ready For DCash

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Comments

  • kamtanblog  On 04/08/2021 at 1:01 am

    Work in progress !
    Reset of world debt !
    DAVOS endorsed.

    Will Guyana go digital ?

    If so how much for one Guyana digi dollar ?

    Will google FMI on price of one Bahamian Sand dollar ?

    What is price of Bitcoin today ?

    Fantasy money ?

    Kamtan uk-ex-EU

  • brandli62  On 04/08/2021 at 4:17 am

    From gold standard to paper money to bits to….

    One a more serious note, the digitalisation of the currency will be bad news for all money launderers and drug dealers as their activities will leave an electronic trail. I will be interesting to see how the bad boys will deal with this problem in a “creative” manner.

    • kamtanblog  On 04/08/2021 at 4:26 am

      The corrupt crooks will find a way !
      They are usually a step ahead of legislators/enforcers.
      Insider info !
      Most sleep in bed with their corrupt associates
      (Colaborators) politicians included.
      Sorry for the cynicism but it’s way of the world.

      As old saying goes
      Set a thief to catch a thief !

      If anything international money laundering will
      increase exponently !

      IMO

      K

    • Brother Man  On 04/08/2021 at 7:04 am

      How would this work for casino table games like blackjack?

      Brother Man

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