On March 1, 2019, the Central Bank of The Bahamas (CBOB) announced a pivotal decision – the selection of NZIA Limited as the preferred technology solutions provider for developing and implementing a digital fiat currency system for the country. This groundbreaking initiative, officially dubbed “Project Sand Dollar,” marked a significant step towards modernizing the Bahamas’ payment system and fostering greater financial inclusion.
The selection of NZIA Limited, a consortium comprising IBM, a renowned leader in enterprise blockchain technology, and Zynesis Pte. Ltd., a Singapore-based software development company specializing in blockchain solutions, underscores the CBOB’s commitment to harnessing cutting-edge advancements in digital technology.
The vision behind Project Sand Dollar is to provide all residents of The Bahamas with equal and expanded access to modernized digital payment capabilities. This transformation, anticipated to culminate in a substantial reduction in cash transactions, aims to enhance financial inclusion across the archipelago, particularly in underserved communities.
To ensure the seamless integration of Sand Dollar into the Bahamas’ financial ecosystem, the CBOB is undertaking a comprehensive review of the country’s legislative framework. The proposed Central Bank of The Bahamas Bill, 2019, currently under consideration by the Bahamian government, lays the groundwork for a regulatory framework tailored to the specific requirements of a digital currency.
This regulatory framework will encompass several key aspects:
Exchange Control Regulations: Safeguards to ensure compliance with the existing exchange control regime.
Anti-Money Laundering and Counter-Terrorist Financing Controls: Robust monitoring and detection mechanisms to combat financial crimes.
Complementary Nature: Specifications to prevent Sand Dollar from becoming a substitute for existing banking services, maintaining the role of traditional institutions in the financial landscape.
The implementation of Project Sand Dollar, driven by a collaborative approach between the CBOB, NZIA Limited, and the Bahamian government, represents a landmark moment in the nation’s financial history. As the project progresses, the Bahamas stands poised to become a pioneer in the adoption of digital currencies, setting an example for other countries seeking to enhance financial accessibility and efficiency.
