The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

USING digital currency to settle cross-border payments is a “natural progression”, according to Dr Allan Wright, manager at the Central Bank of The Bahamas.

Dr Wright said digital currencies can be used to achieve “payment efficiency” by facilitating cross-border transfers across the region.

Speaking at the D3 Bahamas Web3 and FinTech Conference yesterday, Dr Wright said: “I think the new interest in how central bank digital currency can be used to settle cross-border payments is what in my view, a natural progression to achieving in payment efficiency.

“After all, trade accounts for a good portion of the overall economy. And it’s not just related to the import and export of goods and services, but also remittances which is very for this this region, and other transfers.”

Mr Rolle said the sand dollar has robust infrastructure in place that takes consumer needs into consideration and that it will maintain its competitive edge over time.

He said: “We have an infrastructure that is robust… Sand dollar is a retail central bank digital currency but it really takes into consideration the needs of the consumer.

“The circulation like China’s is relatively low, but it is increasing. There are some aspects that we need to improve on. But all of the major issues of privacy, ensuring privacy of data between the clients who are sending and receiving money, ensuring the robustness of the infrastructure are already in place.

“And if we continue to move on the path that we’re on, I believe that Sand dollar will continue maintain its edge in the world economy.”

He added that the sand dollar was created to provide a solution to the banking woes of many Family Island residents that do not have access to banking facilities.

He said: “While the Central Bank in The Bahamas is obviously the chief innovator and regulator for the CBDC, we remain agile in our process our way we look forward and the change that needs to be made to ensure that we maintain a product that is that is demanded by the population, that is useful for the population, as well as… including more persons within the financial system.

“We have many islands and cays that are spread across and where physical banking is sometimes challenging for individuals. And that’s one of the main reasons why the Sand Dollar was launched by the central bank digital currency to gain access to these persons who are far flung across the archipelago.

“The CBDC remains the main purview of the Central Bank of the Bahamas but we’re cognizant of the fact that we have to be changing and agile in relation to the needs of consumers within the economy and as well as the larger diaspora.”