Following in the footsteps of China and France, the Central Bank of the Bahamas has launched its very own CBDC in the district of Exuma. According to a press release, the digital version of the Bahamian dollar has been launched on 27 December.
Reportedly, this will be Bahama’s first digital currency under Project Sandbox. It aims to make finance more efficient by digitalizing it which is the first step towards its modernization. This initiative is speculated to have the potential to make finance non-discriminatory.
Reduction of Ill Effects by the Digitalization of Money
According to the official document detailing the hows and whats of the digital currency, the introduction of digital money in the Bahamas is expected to reduce the abuses in the financial market to a great degree. By the employment of modern means of digitalizing money, corruption or malfeasance like money laundering or other illicit abuses that stand as a threat to finance could be cut back on.
CBOB has added that cash use also imposes physical security risks on companies and creates more exposure to fraudulent losses compared to electronic point-of-sale transactions. As far as physical security is concerned, a widely adopted CBDC would also minimize users’ risk of violent crimes targeting cash holders and potentially reduce protection and insurance costs associated with keeping cash on business premises.
Digital Currency to be an Aid during Natural Calamities
The officials of the Central Bank of Bahamas are insisting on the digital currency. They opine that minimizing dependency on cash will be beneficial for the public in several ways one of which could be felt in times of natural disaster or calamities. During the times of natural disasters when the unavailability of essentials turns out to be a real matter of worry, the digital currency can be of aid as opposed to cash; the availability of which is unsure. These speculations are premised on the feedback of other countries in which digital currency is in operation already. One instance is that of China where the employment of digital currency has almost eliminated the hassle of bank account transfers.