The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Bahamas’s digital currency, the Sand Dollar, nearly trebled in circulation in 2020.

The Central Bank of The Bahamas in its Annual Report & Statement of Accounts, 2021 released last week, said about the Sand Dollar: “During 2021, COVID-19 continued to impact the bank’s ability to launch any major form of in person promotions or marketing efforts of Sand Dollar. With adoption efforts still moderated, at end-2021, Sand Dollars in circulation increased to $0.3m from $0.08m in 2020.”

The bank added: “Progress continued on technology infrastructure development and engagement with financial institutions. The bank completed direct integration into the Real Time Gross Settlement (RTGS) system, and progressed the integration of the infrastructure with the Bahamas Automated Clearing House (ACH) for transfers to and from commercial banks. This process paralleled residual efforts by commercial banks to transition to a modernised, customer initiated entries (CIE) format for electronic funds transfer through the ACH platform.”

Since the launch of the Sand Dollar in October 2020, the bank has been on a concerted public education campaign on the benefits of using the digital currency and how its usage would help in receiving traditional commercial banking services.

The report continued: “The Bahamian Dollar Digital Currency Regulations, 2021 were gazetted into effect in November, 2021. An initial six authorized financial institutions (AFIs) were approved to issue central bank digital currency wallets and connect with the Sand Dollar platform.

“The bank continued its collaboration with the government to use Sand Dollar as a method for collec- tions and disbursement of payments. This focused on enabling digital currency receipting on the government’s DigiPay platform, and planning around phased acceptance of payments at various public facing services outlets.

“The bank also mobilised public relations support, but engaged a local public relations agency to strategise and coordinate on initiatives to encourage Sand Dollar adoption. Early efforts have concentrated on additional market research; inclusive of focus groups and online surveys to further affirm the approach of the public education campaign slated to intensify in 2022.”

The bank added: “Due to restrictions emanating from the COVID-19 pandemic, the customer base among MTBs and PSPs grew significantly during the year, as well as the usage of digital wallets, electronic transfers and bill payments, among others.

“The moratorium placed on the consideration of new licence applications for MTBs and PSPs remained in effect during the year. It is expected to be extended through to September, 2022 to assist with facilitating the stable, orderly adjustment of the expanded list of participants within the payments space."