At different scales, some nations are already experimenting with the use of a local CBDC with the ambition of making it international in scope. This is particularly the case in the Bahamas, which has recently used the SAND dollar, its digital currency. The Central Bank of the Bahamas (CBOB) plans to make its CBDC project interoperable at the international level. The decision is primarily intended to facilitate the conversion of assets with fiat held by its users in their bank accounts. More details below.
Make the SAND Dollar interoperable with other world currencies
The news of the expected change in dimension for the Sand Dollar was reported by the national news agency which relayed the words of Bobby chen. The latter, who is the deputy director of electronic solutions of the CBOB, said that the local digital currency would soon be interoperable with other world currencies. ” At the moment it is only used in a domestic setting, but we are currently working on a solution that will make it interoperable with other world currencies. », He declared.
Also responsible within the central bank of the Bahamas, Cleopatra davis spoke of the need for the local CBDC to move to interoperability. This would therefore be a key strategy alongside the integration of real-time gross settlement. in order to open the Sand Dollar to other markets. In practical terms, this approach should promote transactions with the Sand Dollar to and from users’ bank accounts. This therefore results in a much smoother conversion with the fiats held by them.
A currency that has proven itself during the COVID-19 pandemic
Launched last year, the Sand Dollar has been successfully tested on the small islands of Exuma and Abaco before opening up to the entire archipelago. This measure, which should be effective during this month, was notably motivated by the results obtained at the start of the year. Indeed, the process of full coverage of the archipelago will have taken on its full meaning during the period of the COVID-19 pandemic. A major element in the national deployment of the currency, boarding without an API card will have allowed users to avoid physical interactions. A success which therefore explains the decision to switch to interoperability of the currency.
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Even though it is a smaller economy, the case of the Bahamas proves that central banks have a strong interest in stepping up preparations for the launch of their CBDC. That of Japan plans to carry out the first tests of its digital currency in 2021.