Another bank issued cryptocurrency! Now in the Baha​mas!

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The Central Bank of the Bahamas (CBOB) plans to launch its cryptocurrency by next year.

As reported by Nassau Guardian, in the near future, CBOB will sign a formal agreement with NZIA.io to create and develop Project “Sand Dollar”. It would be the first digital currency in the Bahamas. At the beginning of 2019, in March, the Bahamas Central Bank announced NZIA Limited as its main partner in this project along with Singapore’s software development company Zynesis.

Equal, Expanded Access to Modernized Digital Payment Capabilities

Project Sand Dollar will be an “integrated, accessible electronic payment system for all businesses and citizens”, the central bank announces. The project will work in accordance with local financial legislation and aims to provid equal access to digital payments to the inhabitants of the archipelago. By doing this, they hope to reduce the volume of operations with cash and service costs.

Although there hasn’t been an official announcement by the CBOB, John Rolle, President of the Bank, noted that the institution hopes to fully expand the project by 2020. In general, the Bahamas are moving closer to full integration of blockchain applications and fintech solutions.

Bahamian Dollars

Currently, there are two accepted currencies in the Bahamas. The United States Dollar and the Bahamian Dollar, which is pegged to the US Dollar at 1:1. Since there is no other information, just the fact that there is going to be a digital currency, it’s quite safe to say that the new cryptocurrency will also be pegged to the US Dollar. Thus it becomes just another government-issued stablecoin. It looks like this government praxis will keep on evolving. Governments will continue to look into developing their own cryptocurrency, rather than using a global one, like Bitcoin, for example. But by doing so, they keep themselves on the same path as before. That is, being centralized and controlling the currency. The only question is – how transparent these government cryptocurrency blockchains are going to be. If they’re private and only governments have access to them, then the word “cryptocurrency” loses its definition. 

Source:

https://thenassauguardian.com/2019/05/29/central-bank-to-sign-contract-for-digital-currency-system/

Photo by Wikimedia Commons