The Central Bank of the Bahamas has confirmed it is moving ahead with the nationwide launch of its digital currency sometime in October…
That will make it probably the first CBDC to launch anywhere in the world – it’s been suggested China won’t launch its own digital yuan initiative until the Beijing Winter Olympics in 2022.
The Sand Dollar is backed 1:1 to the Bahamian dollar (BSD) which, in turn, is pegged to the U.S. dollar.
The central bank will mint more Sand Dollars as demanded, at the same time removing physical BSD out of circulation to prevent inflating the monetary supply.
[The central bank representative] said the CBDC had been designed to provide people and businesses in some of the archipelago’s far-flung islands with better access to financial services.