The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The digital Bahamian dollar’s technology provider believes its roll-out can increase bank profits by three percent despite its US counterpart’s dominant role in circulating currency.

Simon Kim, managing director of NZIA Ltd, speaking at the Project Sand Dollar launch last week, said: “Currently, looking at the overall economic volume, it’s about 70 percent depending on the US dollar and only 30 percent on the Bahamian.

“So even that 30 percent, if we make sand dollar as the backbone of any banking service we can easily increase the net profit of the banks by three percent. But if we move into the international payments well, in future, we can even increase the net profit further.”

John Rolle, the Central Bank’s governor, added: “One of the main important benefits that we provide is for all financial institutions in the country to communicate. So it is foremost a communications platform. Whatever financial service provider or individual chooses the Sand Dollar network will be in the background allowing for money to come and go.

“So literally you will be able to say that you can text money to somebody. You just need to know their alias or whatever their name is in the system, and you don’t need to know who is their financial institution or where their account is. I mean, that information is in the system, but it really provides for the seamless communications and payment instructions in the background that is a very important part of this.”

Mr Rolle added: “We want to make sure we support the set-up of that system because, even if it is profitable to provide financial services in parts of The Bahamas, we don’t want the decision to be made solely on the basis of where businesses decide it is profitable. We want to make sure that the national infrastructure makes it possible and justifiable for all of the pockets of the communities.

“For persons still without a bank account, a mobile wallet will be an entry point to access other domestic financial services. The system of electronic customer due diligence that the Central Bank proposes to establish will allow persons to go online and open bank accounts remotely from anywhere in The Bahamas. To do this, financial institutions will be able to rely on centrally available data on potential customers.”