Earlier we had reported that the Bahamas has plans to launch its own digital version of Bahamian Dollar. The initiative is termed as Project Sand Dollar. However, a stipulated time-frame was not decided for this project execution. The latest update is that Central Bank has started the project’s pilot phase in Exuma this 27th December 2019. The Exuma will benefit from this Sand Dollar by January 2020 end.
This initiative is to extend the Bahamian Payments System Modernization Initiative (PSMI) solution. The PSMI targets to improve financial inclusion and access and to make domestic payments more efficient and non-discriminatory.
On May 30, CBOB signed an official agreement with NZIA.io to develop and implement “Project Sand Dollar”, the report states. Project Sand Dollar will operate on an electronic payment system for an “integrated, affordable” transfer. The project is specially targeted towards local businesses and residents. To be incorporated allegedly into this financial infrastructure, the team will confirm that the payment system follows the local financial regulations. The project also will provide all residents of the island country equal access to digital payments.
The Sand Dollar will be pegged 1:1 to the Bahamian Dollar (BSD). While the BSD itself is pegged 1:1 with the USD. Therefore, the Sand Dollar is a blockchain-based stablecoin that is interchangeable with the BSD and the USD.
With the project extension in Exuma, the Central Bank of Bahamas also plans new regulations of the currency to safeguard customer data protection.