Expert insights on the launch of the Sand Dollar, the national digital currency developed by The Central Bank of the Bahamas. The first Central Bank Digital Currency (CBDC) in the world to be fully deployed, the Sand Dollar is a digital version of the Bahamian dollar.
Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues
Q3 2020 hedge fund letters, conferences and more
Johannes Kaske, Sales Director Germany at METACO:
David Einhorn's Greenlight Capital funds returned 5.9% in the third quarter of 2020, compared to a gain of 8.9% for the S&P 500 in the same period. This year has been particularly challenging for value investors. Growth stocks have surged as value has struggled. For Greenlight, one of Wall Street's most established value-focused investment funds, Read More
It is great to see a first productive CBDC in the Bahamas. This is an important step towards accelerated digital transformation and CBDC adoption. It is also interesting to see that it is mainly intended to provide financial access to the Bahamas increasingly unbanked population due to the banking sector downsizing physical branches.
In this vein, it appears to have a slightly different purpose as compared to CBDC initiatives from major economic areas like China, Europe or the United States. In those areas, I see the potential of innovating financial markets with automated payments, more efficient payment infrastructures or new types of assets to be a more important driver of efforts.
However, as the Sand Dollar is backed by the Central Bank of the Bahamas and tied to the BSD--and thus the USD--it might fuel new tokenization projects, as the Sand Dollar would be a regulated alternative to non-governmental third party stablecoins. Still, large scale institutional adoption of tokenization will likely require a digital version of a major global currency.
In my opinion, central banks across the globe are likely to intensify their CBDC efforts and will monitor the developments and adoption of the Sand Dollar and further CBDCs very closely.
Konstantin Richter, CEO and Founder of Blockdaemon
As one of the first CBDCs to be officially launched, the Bahama's release of the Sand Dollar is leading the way in CBDC development. However it has been, until recently, overshadowed by progress in other CBDCs and larger economies, with China and Europe recently announcing developments with the digital Yuan and digital Euro. The project started in 2018 and seems to be largely aligned with the needs of the Bahamian population in enabling mobile transfers of Sand Dollars, and implementing security practices that align with mobile transactions. The buy-in that the Central Bank of the Bahamas has achieved from private sector players will be sure to garner significant levels of adoption and support.
One of the markers of success of the Sand Dollar, laid out by the Central Bank will be whether it can fully serve communities who do not currently have access to digital payments or banking infrastructure. As with any CBDC, success comes from adoption and it will be interesting to see how quickly levels of adoption will grow among citizens.
At their heart, the drivers for using a digital currency lie within the realms of convenience and risk. The Sand Dollar is pegged to the Bahamian dollar which is in turn pegged to the USD, this opens up opportunities for exchanging both BSD and USD for the Sand Dollar which could potentially tap into the US market. Overall, the launch of the Sand Dollar solidifies the advances that have been made thus far in digital currencies and pioneers concepts in furthering transactional efficiency and accessibility.
Antony Welfare, Chief Commercial Officer, NEM Software
As society moves increasingly away from cash, the development and implementation of CBDCs continues to pick up pace. It makes sense that in a monetary system which is becoming increasingly digital, financial authorities would enact digital versions of their own currency.
The launch of the Bahamian Digital Currency, the Sand Dollar, is an important step towards the transformation of our global financial system to one fit for purpose in 2020. It is promising to see more central banks making strides forward in this space, and to see the Bahama Central Bank taking this groundbreaking step towards introducing a CBDC alongside other jurisdictions, such as Lithuania, Estonia and China.
It will be interesting to see how the Sand Dollar will compare against the emergence of future private stablecoin projects, such as that of Libra, and whether there will be space on the market for both forms of digital currency to exist in parallel among retail users.
Luciano Nonnis, Founder, DXone
In a way, it is fitting that an archipelago-nation with hundreds of islands would roll out a CDBC, for such a digital currency can really be a uniting force and more efficient for the regulator and central bank.
I expect nations such as the U.S., China, Russia, and those of the European Union to keep a close eye on the development out of the Bahamas. The Sand Dollar initiative was first trialed on the smaller islands of Exuma and Abaco in December 2019, so you see it took about 10 months to roll out the digital currency once pilots were underway.
The country chose Exuma because it is composed of Great Exuma and its surrounding cays. The central bank believed it best represented the geography of the greater Bahamas. In this respect, Bahamas serves as a great pilot for global central bank digital currencies, as the nation in some ways might be seen as a microcosm of the worlds many nations and continents,
As with all central bank digital currencies, it is important to note this is not a cryptocurrency built on a blockchain in the way that Satoshi Nakamoto, the founder of Bitcoin, envisaged the technology.
While cryptocurrencies are deployed over decentralised networks, the central bank digital currencies of all nations are centralised. So anyone who tells you this is a win for decentralised cryptocurrency doesnt know what they are talking about. Bitcoin is decentralised and stateless. CBDCs are centralised and issued by governments.
In its FAQ on its website, the Bahamas make this clear: the central bank digital currency is not like Bitcoin. It is issued by a central party; i.e. the Central Bank of The Bahamas and is backed by Bahamian fiat. In a way, the CBDC is more akin to a public sector version of a centralised stablecoin a la Tether.
The payment system has been designed to be more secure than existing payments mechanisms, according to the nation, but one must ask: is physical cash really a broken medium? Man has used physical forms of currencyfrom gold and silver to fiat paperfor millenia. Whats so insecure about that? I suppose from a regulators perspective there is no AML and KYC for cash transactions, and thats what the push for CBDCs is all about.
See the original post:
- Bahamas Will Only Allow Vaccine if it is Safe - Caribbean News - caribbeannationalweekly.com - December 8th, 2020
- Genting Malaysia's resort in the Bahamas to reopen on Dec 26 - The Edge Markets MY - December 8th, 2020
- Commission: UN vote signals new line of thinking for The Bahamas on marijuana - EyeWitness News - December 8th, 2020
- Sovereign default 'outside the realm' of fiscal possibility - Bahamas Tribune - December 8th, 2020
- Petition launched to protest Disney's plan for cruise destination in the Bahamas - NYCaribNews - December 8th, 2020
- Human Rights Bahamas calls for the release of Cameroon asylum seekers detained in The Bahamas - EyeWitness News - December 8th, 2020
- 30 more cases over three days Eye Witness News - EyeWitness News - December 8th, 2020
- New Facial Biometric Technology Will Make CBP Preclearance at LPIA more Efficient and Secure - US Embassy in The Bahamas - December 8th, 2020
- Governor warns on future tax increases - Bahamas Tribune - December 8th, 2020
- What will 750,000 buy in the Hamptons, Spain, Clontarf, London and the Bahamas? - The Irish Times - December 8th, 2020
- Initiative launched to improve entrepreneurial ecosystem and finance access - EyeWitness News - December 8th, 2020
- Government Of The Bahamas Statement On US Travel Advisory - PRNewswire - November 29th, 2020
- Too hard to get to The Bahamas - Bahamas Tribune - November 29th, 2020
- PM: Many will travel, but residents must protect The Bahamas - EyeWitness News - November 29th, 2020
- No clinical evidence of COVID reinfections in The Bahamas - EyeWitness News - November 29th, 2020
- Phoenix family's vacation to Bahamas cheaper than expected - AZFamily - November 29th, 2020
- US donates additional equipment towards COVID fight in The Bahamas - EyeWitness News - November 29th, 2020
- Foreign Affairs: Bahamas committed to equality Eye Witness News - EyeWitness News - November 29th, 2020
- PM: Govt needs these powers Eye Witness News - EyeWitness News - November 29th, 2020
- Bamboo Shack, Bethel Brothers Morticians join in on tablet donations - EyeWitness News - November 29th, 2020
- PM to meditate on new finance minister pick, decision by next week - EyeWitness News - November 29th, 2020
- DPM remains focused on work ahead Eye Witness News - EyeWitness News - November 29th, 2020
- What's New In The Islands Of The Bahamas This Winter - PRNewswire - November 24th, 2020
- INSIGHT: From persecution to prison to poverty a political refugee's five-year ordeal in The Bahamas - Bahamas Tribune - November 24th, 2020
- Joe Giudice Is Headed to the Bahamas in the New Year for Celebrity Boxing! - WSMV Nashville - November 24th, 2020
- US Donates Additional $20K to COVID Fight in The Bahamas - US Embassy in The Bahamas - November 24th, 2020
- Bahamas To Buy Off Hurricanes With Sand Dollars. - The St. Kitts-Nevis Observer - November 24th, 2020
- Limeade Bahamas provides breakfast for 400 in the Englerston community - EyeWitness News - November 24th, 2020
- BPC urged to stand down, warned of possible legal action - EyeWitness News - November 24th, 2020
- Forbes: We are not out of the second wave yet - EyeWitness News - November 24th, 2020
- Bahamas Paradise confirms the sale of Grand Celebration - Seatrade Cruise News - November 24th, 2020
- Grand Bahama cases double in two weeks Eye Witness News - EyeWitness News - November 24th, 2020
- The Bahamas gains a new fleet of national security drones - DroneDJ - November 24th, 2020
- PM affirms govt commitment to preschools, says Family Island preschools will receive same benefits as NP - EyeWitness News - November 24th, 2020
- BPC on track to spud exploratory well in six weeks - EyeWitness News - November 24th, 2020
- Former Sky Bahamas employees claim they are owed $740000 in back pay - EyeWitness News - November 24th, 2020
- Bahamas Professional Golf Association recognizes contributions of Albany Bahamas and Bakers Bay Golf and Ocean Club - EyeWitness News - November 24th, 2020
- WPT, MILLIONS Online, Russia and the Bahamas: Partypoker Releases Live and Online Schedule for 2021 - Pokerfuse - November 24th, 2020
- Baha Mar, The Leading Resort Destination In The Bahamas, Announces Its Reopening, Welcoming Back Guests Beginning December 17, 2020 - PRNewswire - November 7th, 2020
- CG to roll out covid-19 travel insurance in Bahamas - International Investment - November 7th, 2020
- Bahamas edged out by Turks and Caicos in popularity among American travelers in ranking - EyeWitness News - November 7th, 2020
- Smith: Outcome of US election has implications on The Bahamas' survival - EyeWitness News - November 7th, 2020
- Athletes aiming for Tokyo 2020 qualification receive funding from Bahamas NOC - Insidethegames.biz - November 7th, 2020
- Americans are Now Considering Bahamas Real Estate in The Midst of Uncertain Times - Yahoo Finance - November 7th, 2020
- GB off the beaten path? Is that all? - Bahamas Tribune - November 7th, 2020
- The Bahamas' Grand Hyatt Baha Mar to reopen in December - Yogonet International - November 7th, 2020
- The Bahamas Updated Their Visitor Guidelines a Day Before Opening to Travelers What to Know - FOX10 News - November 7th, 2020
- Atlantis employees to begin weekly COVID testing next week - EyeWitness News - November 7th, 2020
- Government signs agreement with ITU for national cybersecurity project - EyeWitness News - November 7th, 2020
- Church farm project aims to help people feed themselves - Bahamas Tribune - November 7th, 2020
- Govt. to expand testing protocols with SalivaDirect pilot program - EyeWitness News - November 7th, 2020
- UNDP and UWI post-disaster Bahamas Resilient Recovery Policy endorsed by Cabinet - EyeWitness News - November 7th, 2020
- Baleria Caribbean to Resume Passenger Sailings Between Port Everglades and the Bahamas - South Florida Caribbean News - October 27th, 2020
- Central Bank Digital Currency: The First Nationwide CBDC In The World Has Been Launched By The Bahamas - Forbes - October 27th, 2020
- SURGE: Bahamas records more than 1000 cases in less than two weeks - EyeWitness News - October 27th, 2020
- American Eagle ERJ145 Runs Off The Runway In The Bahamas - Simple Flying - October 27th, 2020
- Everything Fresh touts 'remarkable growth' in Bahamas - Loop News Jamaica - October 27th, 2020
- COVID Impacts Heavily on Government Business Says Bahamas - caribbeannationalweekly.com - October 27th, 2020
- Discover the Dreamy Islands of The Bahamas With a Yacht Charter - TravelPulse - October 27th, 2020
- St. Pete native to paddleboard more than 400 miles from Tampa Bay area to Bahamas - ABC Action News - October 27th, 2020
- Teacher tests positive at school in Grand Bahama - Bahamas Tribune - October 27th, 2020
- COVID has severely affected the tourism dependent economy says Bahamas - NYCaribNews - October 27th, 2020
- The Potential Impact Of COVID-19 On Leases In The Bahamas - Real Estate and Construction - Bahamas - Mondaq News Alerts - October 27th, 2020
- COVID-19: Force Majeure And Frustration Of Contracts - Coronavirus (COVID-19) - Bahamas - Mondaq News Alerts - October 27th, 2020
- Henfield: Worst could be yet to come - EyeWitness News - October 27th, 2020
- $500 million paid to reverse osmosis operators over last 20 years says Gibson - EyeWitness News - October 27th, 2020
- Long Island MP wants free COVID testing for Bahamians - EyeWitness News - October 27th, 2020
- Bishop Ellis says the target of his does not believe in God comment is a senior official not PM - EyeWitness News - October 27th, 2020
- Bahamas Government to review legalization of a hemp industry, and inject 250M for small business development - The Eleutheran - October 27th, 2020
- Man sentenced to three years in prison for stealing over $50000 in cash and items - EyeWitness News - October 27th, 2020
- Government doing all it can to push for early Cub Med opening - EyeWitness News - October 27th, 2020
- WSC obtains injunction against reverse osmosis operator over Eleuthera supply disruption - EyeWitness News - October 27th, 2020
- PAHO Director: If our health systems are not prepared, it is not the time to reopen - EyeWitness News - September 18th, 2020
- Bahamas New VIP Plan: Allow Tourists In, Then Lock Them Down. - The St. Kitts-Nevis Observer - September 18th, 2020
- Search Called Off for Missing Jamaicans and Haitians in Bahamas - caribbeannationalweekly.com - September 18th, 2020
- PAHO: Bahamas showing balance between reducing transmission and reopening - EyeWitness News - September 18th, 2020
- 'Fifth division Bahamas' faces uphill struggle to hit Singapore ambition - Bahamas Tribune - September 18th, 2020
- Back to the Bahamas: It's the people you remember most from life's adventures - Kingsport Times News - September 18th, 2020
- Divide and rule - Bahamas Tribune - September 18th, 2020
- A year after Hurricane Dorian hit the Bahamas, the islands are eager to welcome back visitors - iNews - September 18th, 2020