According to Odaily, John Rolle, the Governor of the Central Bank of the Bahamas, has revealed that the country is currently formulating regulations that will require commercial banks to provide access to the central bank's digital currency, the 'Sand Dollar', in an effort to stimulate its popularity. Rolle stated that in the face of the low usage rate of the 'Sand Dollar', incentive measures have shifted towards mandatory measures. The relevant regulations will be introduced within two years, requiring all banks to participate.
However, the promotion of Central Bank Digital Currency (CBDC) faces challenges. The banking industry is concerned about the outflow of deposits, and banks need to significantly overhaul their IT systems. At present, the circulation of the 'Sand Dollar' accounts for less than 1%, and the amount of wallet recharges has significantly declined. Similar problems also plague other countries implementing CBDCs, as the public is sceptical about its advantages and worried about increased government surveillance.
Rolle acknowledged that the key to increasing the usage rate of the 'Sand Dollar' lies in promoting more merchants, restaurants, and other businesses to accept it as a payment method. Forcing commercial banks to embed the 'Sand Dollar' system could help. However, he also stated that it is unlikely that the Bahamas will follow India's example by promoting CBDC through financial incentives, nor will it provide interest rates for 'Sand Dollar' wallets to attract users, as proposed in Israel.