A small Caribbean country of some 400,000 people the Bahamas is an emerging star in the world of finance. It initiated a central bank digital currency, the Sand Dollar in 2020 making it the world’s first country to do so. Today the nation is not fearing to come up with strategies that may help to increase the level of adoption.

Pioneering CBDC Regulations

Currently, commercial banks through the BOJ which is headed by Governor John Rolle are reportedly to be subjected to regulations that would compel them to make Sand Dollar available. This move will seek to trigger adoption in within two years’ time. Bahamas’ CBDC project is leading interest from over 130 countries considering a central bank digital currency.

Sand Dollar: A Slow Start.

Implementation of Sand Dollar is still weak many years after its seemingly revolutionary debut. Present data reveal that it represents no more than 0.8 percent of the total amount of money existing in the world. Mobile money transactions went down in terms of wallet top-ups from $49.8 million to $12 million in the eight months to August 2023.

Commercial Banks: New Life Change

The new regulation will create pressure for acquiring new IT systems in the banks. This has been regarded as the move from the “carrot to stick” strategy of pushing forward the CBDC and mobile payments. The authorities of banks around the globe have revealed some worries regarding possible deposit flight that may be caused by CBDCs.

Global CBDC Landscape

Central banks are literally running towards CBDCs and 130 plus countries are either conducting research or experimenting with it. The ECB is currently intending to make the use of digital euro mandatory for merchants and banks. Still, the Bahamas continues to be an example of leading implementation.

CBDC Types: Retail Vs Wholesale

CBDCs come in two forms: gross (retail or public use) and net (wholesale that is the financial institutions only). The Sand Dollar is in the category of retail, as it provides the general public with onward access to digital central bank money.

Mobile Payments: Key Driver

Promoting CBDC will increase the usage of mobile payment consistent with the general objective. It has the potential of transforming financial services in the context of the island nation and the ways of carrying out transactions.


More so, as the Bahamas advances along its CBDC plan, the world observes. Therefore, it is expected that experiences of the Sand Dollar will dictate the future processes of developing CBDCs worldwide. As the nation approaches the integration of commercial banks in the future use of digital currencies,Bahamas is making new milestones.