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The Central Bank of The Bahamas to Introduce a Digital Currency

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by Sofiko Abeslamidze · 3 min read
The Central Bank of The Bahamas to Introduce a Digital Currency
Photo: Central Bank Bahamas / Twitter

During the Bahamas Blockchain and Cryptocurrency Conference, the country’s Deputy Prime Minister revealed the intention of central bank to launch its own digital currency.

The list of countries whose central banks are considering the opportunity of a blockchain-based digital currency is steadily broadens. A while ago Coinspeaker reported the project ‘Inthanon’ developed by the Thailand’s central bank as a part of streamlining interbank clearance and settlement system by the means of blockchains.

The endless compilation of benefits delivered by the blockchain technology makes banks put many efforts into the development of a stable blockchain system that once integrated will pave the seamless way for faster and cheaper transaction and validation due to less intermediation needed compared to the currently operating processes.

A few of competetive blockchain features are especially lucrative for such regions as the Bahamas. As an island nation consisting of over 700 islands, islets and cays, where transportation can be a costly inconvenience for many, especially the elderly, the Bahamas banks have to offer financial services digitally and securely.

During a keynote made at the Bahamas Blockchain and Cryptocurrency Conference, country’s Deputy Prime Minister who also served as Minister of Finance, K. Peter Turnquest said that the digital currency would assist in banking the unbanked while cutting out arduous trips to the main islands needed to do banking. This comes in the wake of many commercial banks in the archipelagic state downsizing and leaving communities without vital banking services.

Speaking to the conference’s attendants of  K. Peter Turnquest has opened the event with the following line:

“Digitization of our government and financial services complements both our ease of doing business initiatives and our digital Bahamas framework.”

The Bahamian Deputy Prime Minister also stressed country’s intention to root out corruption with the help of blockchains. According to Turnquest, in the near future, he hopes the government will be introducing a pilot program using blockchain certifications for people who complete studies at the National Training Agency.

Turnquest believes that incorporation of the blockchain technology into the government system will eliminate a lot of the human element that mostly facilitates corruption. Today there is a single portal for entry and since all of the processing being done behind the scenes, either through electronic data interchange or through human facilitation, one have to tip somebody in order to get service. With introduction of blockchains, there will be a digital ledger recording all transactions executed and ultimatly making it simpler to track down the whole process.

Additionally the Bahamian Deputy Prime Minister marked his full awareness of the bunch of the challenges that come with establishing and growing a technology sector. Yet the Bahamas has been stated to be uniquely positioned to quickly become the jurisdiction of choice for technology companies, particularly blockchain technology companies, and FinTech solution providers.

When blockchain technology still in its infancy, full integration could take a decade or more. However, the potential that the technology offers paired with enthusiasm about becoming a blockchain hot spot puts the Bahamas in a prime position.

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