Although bitcoin, a digital asset of its own kind, is not supported or advocated by many central banks, the concept of digital currency is endorsed by many. Joining the list of banks promoting the use of digital currency, the Central Bank of the Bahamas (CBOB) announced to release its own digital currency.
According to the governor of CBOB, John Rolle, the country is planning to launch its own fiat digital currency in order to decrease dependence on cash. However, the primary motivation behind launching a digital currency is to ensure that even after natural disasters, the economy of the country remains resilient.
Under the project dubbed Sand Dollar, Bahamas’ first digital currency will be worked upon. Speaking at the Counsellors Limited’s Exuma Business Outlook at Sandals Emerald Bay, Rolle revealed that the digital currency will be accompanied by an e-wallet that could be accessed easily by a smartphone. Further elaborating on the advantages of fiat digital currency, Rolle said:
“It would permit wireless restoration of payments connectively, avoiding the cash shipment and cash handling frustrations. It would permit electronic dispersing of aid and allow families to recapture personal dignity by restoring the flexibility to prioritize the elements of personal need that they prefer to satisfy post-disasters.
Rolle also explained the consequences of natural disasters on the banking sector. After quoting the recent hurricane, Rolle told that the banking sector suffering substantially due to the hurricane faced troubles in their operations.
Usually, following the natural mishaps, the electricity and internet coverage of affected areas can take some time before restoration which in turn may impact the operations of banks to a great extent. Therefore, trying to facilitate people after natural disasters by providing them remote access to facilities, efforts are laid to develop the Sand Dollar infrastructure. In this regard, Rolle stated:
The Sand Dollar infrastructure is being designed to connect with bank accounts, so that remote access to these facilities is also quickly re-enabled for deposits and withdrawals. Fully accessible and enabled digital mobile payments would resolve many logistical challenges at once.
Previously, China also unveiled its plan to launch a digital currency of its own. Similarly, the central bank of Russia also told that it was exploring the possibility of launching their own cryptocurrency. While each of the aforementioned countries has its own reason for creating a native digital currency, let’s see which country is able to reach the ladder of success first.