The Role of the Bahamas in the Blockchain World

The azure waters of the Bahamas.

People know the Bahamas for its alluring coastline, attractive tax regimes, and an island getaway from the hum-drum of daily life. It has also marketed itself as a innovator in Blockchain technology and is at the forefront of the global growth in cryptocurrency.

Very own digital currency

In this regard, the Central Bank of the Bahamas announced in December 2019 the launch of “Project Sand Dollar,” the island nation’s very own digital currency. The Sand Dollar is not a cryptocurrency, but rather a “digital fiat currency,” reported Coindesk. Its use is equivalent to the nation’s standard paper currency.

Moreover, this represents a major step in the bank’s goals of establishing a fully digitalised banking system in the future. Coindesk reported the Sand Dollar will also help reduce the country’s carbon footprint and the costs associated with printing money.

Cryptocurrency legislation in the Bahamas

In January 2020, the legislature of the Bahamas issued the DARE Bill into rotation. This bill aims to regulate and monitor the usage of cryptocurrency in the country. This follows suite from many other notable economies, such as Portugal, by legislating and legitimising digital currency regimens.

Coinrivet reports that the bill introduces punishments to people who offend the regulations set out in it. This includes fines of up to $500,000 and prison sentences of up to five years. The country hopes the popularisation of cryptocurrency will create an inclusive space for those who do not yet make use of the country’s fantastic financial programmes.

The Bahamas has been known for some decades as a haven for those hoping to regulate their assets smartly. Now the island may look forward to crypto enthusiasts also making use of their favourable crypto schemes on its shores.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.