The Central Bank of the Bahamas has confirmed it is moving ahead with the nationwide launch of its digital currency sometime in October.

  • The Caribbean nation of just under 400,000 people will roll-out its central bank digital currency (CBDC), dubbed the "Sand Dollar," next month, Bloomberg reported Tuesday.
  • That will make it probably the first CBDC to launch anywhere in the world – it's been suggested China won't launch its own digital yuan initiative until the Beijing Winter Olympics in 2022.
  • Approximately $48,000 worth of the new CBDC will enter circulation initially and will be available via a mobile-based wallet app.
  • The Sand Dollar is backed 1:1 to the Bahamian dollar (BSD) which, in turn, is pegged to the U.S. dollar.
  • The central bank will mint more Sand Dollars as demanded, at the same time removing physical BSD out of circulation to prevent inflating the monetary supply.
  • Speaking to Bloomberg, Chaozhen Chen, the central bank's assistant manager of eSolutions, said the CBDC had been designed to provide people and businesses in some of the archipelago's far-flung islands with better access to financial services.
  • Today's news comes more than a year after the central bank first engaged local tech provider NZIA to design and implement the CBDC.
  • It has already been tested on the remote islands of Exuma and Abaco.

See also: French Central Bank Chief Eyes Public-Private Partnership for Possible Digital Euro

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