Bahamas Central Bank is Launching a State Backed Cryptocurrency

The Bahamian government has decided to set up a national cryptocurrency to aid the unbanked and ease the process of doing business in the multiple islands that make up the nation.

“A digital Bahamian currency is especially important for the many family islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely.”

The Bahaman archipelago, located east of Florida in the Atlantic Ocean, uses two fiat currencies. The Bahamian Dollar and the USD are used simultaneously but since the Bahamian dollar is pegged to the value of the USD at a 1:1 ratio, in reality, the Bahamas does not have its own currency. Creating a cryptocurrency may allow for a truly native dollar to reflect the islands 9 billion USD gross domestic product.

By introducing a cryptocurrency, companies established in The Bahamas, such as the Big Four accounting firms, could potentially do business more easily and in a far more private manner than they currently do. Many of their clients also face the inability to privately transact using the banking system, making it difficult to steer clear of some of the taxes imposed by foreign nations.

Because the Bahamas is a nation of over 700 islands and cays, access to a bank may mean traveling by sea or air a great distance for many in the nation.

While many governments have indicated – in some shape or form – interest in integrating blockchain technology into their existing processes, the Bahamas’ decision to create a central bank digital currency (CBDC), places the archipelago in rare company, among countries like Norway, Thailand, and the United Kingdom.

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