The year 2019 saw a lot of interesting developments within the world of cryptocurrency, one of the most notable was the sharp increase in interest from various countries in developing their own national digital tokens. Many believe this is due to the general rise in cryptocurrency popularity and the fact that many countries are seeing the benefits in establishing their own. Countries such as Venezuela, the British virgin islands and the Bahamas have looked into creating their own national digital currencies for reasons that range from combating hyperinflation to promoting innovation.
It seems the Bahamas intends to start the next year on a high note as a recent press release announced that the central bank of Bahamas will be launching the pilot for their digital token in early 2020.
According to the press release, the central bank of the Bahamas will release the test pilot of the token on January 27, 2020, in the Exuma district. Later in the first half of 2020, this pilot will extend to other regions within the Bahamas.
The digital token in question is being developed under the initiative of Sandollar and according to the central bank of the Bahamas, it will help in making financial services more accessible to people and will also fight abuse of cash such as money laundering and other illicit activities.
“Cash usage also imposes physical security risks on businesses and creates more exposure to fraudulent losses relative to electronic point of sales transactions. As it relates to physical safety, a widely adopted CBDC would also place users at less risk of violent crimes that target holders of cash, and potentially reduce security and insurance costs associated with keeping cash on business premises,” the CBOB says.
It should also be noted that this year, the Bahamas suffered a hurricane disaster and according to the governor of the central bank, this digital currency would come in handy in such an event and will reduce the country’s dependence on cash.
“It would permit wireless restoration of payments connectivity, 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,” the governor of the CBOB, John Rolle said.