The first Central Bank Digital Currency (CBDC) in the world has been issued by the central bank of The Bahamas. As per an announcement, Sand Dollar which is the centralized digital currency of The Bahamas has been officially launched by its central bank on October 20, 2020.
The first country to officially launch a CBDC
The Bahamas is now the first country whose central bank has rolled out a central bank digital currency. Many other banks are still in the development stages of their respective central bank digital currencies.
Sand Dollar is now accessible to all of the 385,000 citizens of the country of Bahamas. They can make their accounts by signing up with Project Sand Dollar. And once they are provided with the Sand Dollar wallet they will be allowed to make their transactions.
The distributed ledger technology (DLT)-based this digital currency is backed by the state and the country’s central bank will regulate it.
Improving payment system
Through Sand Dollar, the country of The Bahamas aims at improving its existing financial payment system which currently runs through cash. Sand Dollar has been designed in a way that it will help the country to make its payment system better. Moreover, this central bank digital currency has not been introduced to replace cash rather it has been set up to complement the cash.
Moreover, there are six financial institutions in total that have been onboarded for the Sand Dollar project by the Bahamas’ central bank including SunCash, Money Maxx, Mobile Assist, Omni Financial, Cash N Go, and Kanoo. The central bank plans to authorize more financial institutions for this project in the future as well.
Out of the 80 percent of the central bank from across the whole world that are researching central bank digital currencies, only a few have shown some progress in this case. Apart from The Bahamas, the central bank of China is also on the verge of releasing its respective CBDC known as the Digital Yuan.