Central Bank of The Bahamas to begin piloting digital currency

The Central Bank of The Bahamas will begin piloting its digital currency tied to the Bahamian Dollar, nicknamed Project Sand Dollar, in Exuma on December 27, 2019, according to an official press release. The pilot program will extend into the first half of 2020 to Abaco, according to the central bank.

In a document outlining how Project Sand Dollar will work, the Central Bank noted that as the pilot program progresses, it will "simultaneously promote the development of new regulations for the digital currency, and strengthen consumer protection, especially around data protection standards," adding, "the Bank will also advance reforms to permit direct participation of non-banks in the domestic payments system."

The Central Bank of The Bahamas first announced that it was researching the development of a digital currency in 2018. In March 2019, the Central Bank selected payment solutions provider NZIA Limited as its main technology provider to develop Project Sand Dollar.