The Bahamas is likely going to become the first country to launch the first-ever Central Bank Digital Currency (CBDC) in the month of October. In the latest announcement, the Central Bank of The Bahamas has said that it will launch its centralized digital currency known as Sand Dollar in the Mid of October.
Sand Dollar is scheduled for Gradual National release
Sand Dollar, which is the digitalized version of the Bahamian dollar, is said to be released gradually in phases. The first phase has been finalized by the Central Bank of The Bahamas which will start on the 20th of October, as per the official announcement. The central bank will release the central bank digital currency nationally via various authorized financial institutions (AFIs).
According to the announcement, the first phase of the Sand Dollar’s launch will be covering all ‘three tiers of authorized accounts’. These account tiers are “each subject to risk-based customer due diligence or “KYC” requirements. These are low-value personal wallets with the least demanding account opening requirements but with more restricted transaction limits”.
The second phase aims at Government services and public organizations such as utility companies. The second phase is set to occur in the first two quarters of the year 2021. Furthermore, talking about the security infrastructure of the Sand Dollar, the Central Bank said in the announcement:
“The Sand Dollar infrastructure incorporates strict attention to confidentiality and data protection. Each wallet provides a unique set of data encryption to ensure privacy and confidentiality. However, all transactions are linked to an anti-money laundering/counter financing of terrorism (AML/CFT) engine to safeguard regulatory compliance and governance.”
Moreover, wallets integrated with Sand Dollar include multi-factor authentication features. In order to access the app and complete transactions there, all of the mobile devices will be required to support the biometrics login or a PassCode.
Sand Dollar is the name that has been given to the central bank digital currency of The Bahamas as well as to this initiative known as Project Sand Dollar.