The Bahamas has announced that next month it will cross the Central Bank Digital Currency (CBDC) finish line.
The Bahamas Central Bank stated that on October 20, it would begin issuing a nationwide digital currency called “Sand Dollar” and perhaps the world’s first retail CBDC.
In the first level, private-sector players, such as banks and credit unions, can prepare their systems for low-value, personal, and business wallets with know-your-customer (KYC) and other enforcement tests.
From early to mid-2021, Sand Dollar’s second step is expected to concentrate on planning critical infrastructure services for CBDC in the government and private sectors, such as utilities.
An increasing system of financial and payment institutions scheduled to intersect with Sand Dollar has already invested in developing mobile wallets for their customers and have been on-boarded for implementation accordingly.
According to the announcement, such wallets will be protected with “multi-factor authentication” safeguards.
The wallet will be securely encrypted to ensure security, although they previously announced that users should not expect to have cash-like anonymity when using the CBDC.
To give users more peace of mind, the central bank has put the CBDC in a rigorous cybersecurity assessment.
Regulations surrounding the CBDC Sand Dollar are still being finalized. As expected, they will be launched in the community over October.
The intended outcome of Project Sand Dollar is that a central bank digital currency will be used by all residents in the Bahamas on a modernized technology platform, with experience and convenience that resembles cash and legally.