Project Sand Dollar is the initiative embarked by Central Bank of The Bahamas to issue its own digital version of the Bahamian dollar as well as implement the appropriate digital payments system infrastructure to sufficiently underpin the operation of a digital currency ecosystem.
Why does the Central Bank of The Bahamas think we need this?
To advance more inclusive access to regulated payments and other financial services for under-serviced communities and socio-economic groups as well as to reduce service delivery costs and increase transactional efficiency for financial services across the Bahamas.
When are the digital dollar and eWallets available for use?
National rollout is expected to begin sometime in 2020. The pilot in Exuma is expected to begin at the end of 2019.
Why was Exuma chosen for the pilot?
Given that Exuma comprises of Great Exuma and its surround cays, Central Bank felt that it best represents the greater configuration of the Bahamas, which makes it the optimal site to begin pilot testing before scaling up operations to the entire country.
What is Cryptocurrency?
Cryptocurrency is a virtual medium of exchange that is encrypted and transmitted over distributed networks independent of any centralized entity.
What is the difference between Central Bank Digital Currency (CBDC) vs. Bitcoin and other Cryptocurrency?
Central Bank Digital Currency is a centralized, regulated, stable, private and secured unit of account and means of exchange; whereas, Bitcoin (along with other cryptocurrencies) is decentralized, unregulated, volatile in value (exchange market traded), public and unsecured unit of account and means of exchange.
Is this a cryptocurrency like Bitcoin?
No, Central Bank Digital Currency is issued and regulated by Central Bank of The Bahamas and shares the same monetary stability as the Bahamian fiat.
What is an e-wallet?
e-Wallet is a secured digital wallet that holds digital currency which can be accessed via mobile devices.
Where are Digital B$ accepted?
Digital B$ can be accepted at any merchant with a Central Bank approved e-Wallet on their mobile device.
How much are the transaction fees?
Transaction fees are negligible.
Is the system secure?
The payments system intends to be more secure than the existing payments mechanisms through the use of multi-factored authentication, high level encryption protocols and enhanced KYC/AML standards.
At the moment, the digital B$ can only be used within the Bahamas.
What is Blockchain?
Blockchain is an emerging technology that serves as a series of time-stamped data managed over a secured, distributed network of database.