The MoneyHatch Newsletter, Edition 7

February 25th, 2024

Editor’s Note

Did you know The Bahamas was the first country in the world to officially launch a central bank digital currency (CBDC)? The Sand Dollar, offers a digital version of the Bahamian dollar. Like any innovation, it has both perks and pitfalls.

The perks being:

• Safer than Cash: If you lose your wallet, your Sand Dollars are still safe.

• Lower Fees: Digital transactions can be cheaper than traditional banking.

• Inclusivity: Helps outer islands with limited banking access.

• Stable: Pegged 1:1 with the Bahamian dollar, which is tied to the USD.

And the cons being:

• Privacy Concerns: Transactions can be tracked by the government.

• Cybersecurity Risks: Digital threats like hacking and fraud are real.

• Limited Use: Only accepted in The Bahamas.

• Tech Barrier: Requires an electronic device and internet access.

The Sand Dollar, which launched in 2020, has seen slow adoption among businesses and citizens over the past 4 years. While it's a step forward for digital finance in The Bahamas, it's not yet widespread or mature enough to rely on exclusively. If you're curious, give it a try, but start small and approach with caution.

Warm regards,

The MoneyHatch Team

Bahamian Financial Updates

Economy News