The Bahamas, the first economy in the world to launch a central bank digital currency (CBDC), is developing regulations to require commercial banks to offer access to its Sand Dollar. This move aims to boost the adoption of the Sand Dollar, which has seen limited usage since its launch in 2020.
The Bahamas’ Approach to the Sand Dollar CBDC
“The adoption of the Sand Dollar remains limited, the country’s central bank governor said.”
According to John Rolle, the Bahamas’ central bank governor, the central bank is preparing regulations that would effectively force commercial banks to distribute the Sand Dollar. Rolle stated that the central bank foresees a process “where all of the commercial banks will eventually be in that space,” and that the authorities have already started signaling the new regulatory direction to local institutions.
Sand Dollar Adoption and Circulation
- The volume of Sand Dollars in circulation rose by 60.8% to $1.7 million from the beginning of 2023 to the end of December 2023, according to central bank data.
- The number of personal wallets for the Sand Dollar expanded by 20% throughout the year to 118,955 by the end of 2023.
The central bank’s efforts to boost the adoption of the Sand Dollar reflect the country’s commitment to its CBDC and the desire to see it gain traction within the Bahamian financial system.
