The Bahamas has launched its digital currency pilot project. According to an announcement from the Central Bank of The Bahamas, the pilot was launched on December 24th.
The digital currency is called the “Sand Dollar” with the pilot offering dubbed Project Sand Dollar. The announcement states that the pilot is currently only in the Exuma district of the Bahamas. However, the Sand Dollar will spread to the Abaco Islands sometime in the first half of 2020.
The Sand Dollar is however not a cryptocurrency. According to a separate document, the Central Bank notes that the currency is simply a representation of the Bahamian dollar. This means that it is not a cryptocurrency and not a stable coin, and will not compete with fiat.
“It would be an identifiable liability of the Central Bank of The Bahamas, equivalent in every respect to the paper currency. Its value would be the same as the existing currency. [It] would also not be a stable coin, or a parallel currency, [and] would not derive any value separate from the external reserves afforded to the Central Bank’s demand liabilities.”
The Central Bank states that this is another plan to further its Bahamian Payments System Modernization Initiative (PSMI). The PSMI kicked off back in the 2000s.
Also, a few limits will be applied to the Sand Dollar. For example, corporate businesses will have a maximum possible $1 million in their wallets. For individuals, a $500 monthly maximum is enforced
Kryptomoney first reported plans for a Bahamian digital currency in June 2018.
Image Credits: Pixabay
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