There are many reasons why a country would choose to release its own digital currency. In the case of Venezuela, it was to combat their hyper-inflation and also to give citizens some form of economic relief due to their current financial situation. In the case of China, many believe their upcoming currency is to compete with the Libra token and make sure that China does not have to rely on any foreign-based digital currency for its citizens. While the issue of countries creating their won digital tokens is still highly debated, one cannot deny that they are certain benefits to them.
According to an October 25, 2019 report, the central bank of Bahamas intends to release its own fiat digital currency in order to combat reliance on cash and also because they believe it will come in handy in the case of any natural disasters and will benefit citizens.
The announcement of this was made by the central bank of Bahamas Governor John Rolle at the Counsellors Limited’s Exuma Business Outlook at Sandals Emerald Bay recently.
The project has been developed as project Sand Dollar and will include a fiat digital currency as well as an accompanying wallet that will carry all relevant information for the user. This draws comparisons to Facebook‘s upcoming token that also has the accompanying Calibra wallet.
“It would permit wireless restoration of payments connectively, avoiding the cash shipment and cash handling frustrations. It would permit electronic dispersing of aid and allow families to recapture personal dignity by restoring the flexibility to prioritize the elements of personal need that they prefer to satisfy post-disasters,” Rolle said.
According to Rolle, one of the most recent incidents that inspired this development was the hurricane that hit the country a few months ago and because it caused damage to many bank branches and as a result, many banks were forced to cease operations for that time. This led many people being stranded without access to banking services and it is believed that a digital currency such as the one being put in place would have come in handy in such a disaster situation.