The Bahamas, a Caribbean paradise, or an area of poverty masked by tourist ideology, is the next country to allegedly be dabbling within central bank orientated cryptocurrencies. Such currencies, also known as Central Bank Digital Currencies (CBDC) are being used in experiments worldwide to investigate how cryptocurrency could be used to help enhance or compliment sovereign FIAT currencies. Whilst many areas do see this sort of experimentation as pointless, many others are starting to seriously consider CBDC’s in an attempt to keep up to date with technology and emerging trends. Moreover, many countries are beginning to recognise that by adopting such a system, they may be able to address some issues with their own sovereign currencies and thus, the integration of a CBDC may turn out to be a very prosperous thing.
According to CCN, The Bahamas government, who recently hosted ‘The Bahamas Blockchain and Cryptocurrency Conference’ in partnership with the Central Bank of The Bahamas. According to CCN, Deputy Prime Minister and Minster of Finance, K. Peter Turnquest has announced that a CBDC will be trialled in The Bahamas, saying:
“Digitization of our government and financial services complements both our ease of doing business initiatives and our digital Bahamas framework.”
You can see the full report for yourself, here-
What are the benefits to this?
Well of course, research which is a key part of any technological revolution. By engaging with blockchain technologies this way, Bahamas officials will be able to get a better understanding of the implications such technology has for the country. Moreover, by establishing a CBDC, The Bahamas can establish a cheaper and more efficient system for receiving and sending money internationally. Given that The Bahamas exported around $1.38 Billion worth of produce in 2016, according to the Observatory of Economic Complexity, you might be able to see just how well The Bahamas could benefit from the integration of a CBDC, simply just on the premise that such technology can improve transaction fees for importers who are paying companies within The Bahamas.
You can see more from the Observatory of Economic Complexity here- https://atlas.media.mit.edu/en/profile/country/bhs/
This adds The Bahamas onto a growing list of countries that are not only expressing an interest in cryptocurrencies, they are also doing something about it, something that could lead to the provision of very important research and help countries like The Bahamas get well ahead of the blockchain game as the technology sweeps the globe.