The Central Bank of the Bahamas announced that the central bank’s digital currency, the sand dollar, is expected to achieve full alignment among the various portfolio providers within a week.
A recent announcement by the Central Bank of Bahrain revealed that accredited financial institutions or financial institutions such as payment service providers are expected to close in the coming days.
The bank said that, in essence, as wallet providers and potential exporters of Sand Dollar, the AFI-compliant has passed a stringent cybersecurity assessment. Institutions that adopted the private bank’s request have already received approval to participate, and institutions that intend to use their private requests are still being processed. The deadline is expected to be Wednesday.
In October 2020, Sand Dollar became the first CBDC in the world to skip the beta phase and reach an official launch. The centrally issued digital currency was made available for use by all Bahamian citizens after issuance, gradually integrating with the commercial banking system. According to the bank, completing this integration is inevitable.
The central bank expects to complete the technical integration of the digital infrastructure with the commercial banking system. The bank said this would establish a link between portfolios and bank deposit accounts through the Bahamas Automated Clearinghouse (ACH) and would allow funds to be transferred in both directions.
To date, nine institutions have been approved to act as issuers of digital currencies to the central bank, including four money transfer companies, three payment service institutions, a credit union, and a commercial bank. The interaction between these devices will allow the Sand Dollar to be distributed and used more efficiently in a variety of applications. Each sand dollar is linked to the value of the Bahamian dollar, which in turn is linked to the value of the US dollar.
The Central Bank of Bahrain has also released a draft of a new regulation that specifically addresses how payment service providers interact with the Sand Dollar, with an alleged focus on consumer protection. The list is expected to be completed by May 1.
“The draft rules aim to improve the current regulatory framework for Payment Service Providers (PSP), particularly with regard to their provision of services related to the central bank’s digital currency (CBDC),” the statement said.