The Central Bank of the Bahamas (CBOB) is reportedly preparing to launch its own fiat-based digital currency to ensure that the nation’s economy remains stable in the event of a natural disaster.
CBOB governor John Rolle recently confirmed that the country was planning to release its own digital currency. Rolle’s comments came during his speech at the Counsellors Limited’s Exuma Business Outlook, held at Sandals Emerald Bay, according to local news outlet the Nassau Guardian.
Rolle stated that digital currencies have the ability to free the nation from its dependence on physical fiat money, particularly cash, which is useful following a natural disaster.
Bahamas’ digital currency is reportedly being created under the guidance of Project Sand Dollar and will be the country’s first fiat-based digital currency. The currency will be supported by an associated online wallet and a payment card.
“It would permit wireless restoration of payments …. avoiding the cash shipment and cash handling frustrations. It would permit electronic dispersing of aid and allow families to recapture personal dignity by restoring the flexibility to prioritize the elements of personal need that they prefer to satisfy post-disasters.”
Rolle also mentioned that following a hurricane the country recently experienced, the local banking industry saw considerable damage to the physical structures of Abaco and Grand Bahamas, which forced banks to halt their operations.
There are many problems that may last for weeks and sometimes months following major natural disasters such as hurricanes. For instance, power grids in affected regions might remain inoperative for a long time. Certain areas in Puerto Rico were still without electricity for almost a year after Hurricane Maria.
While discussing the potential impact and benefits of offline cryptocurrency transaction solutions, Richard Myers, a blockchain developer at Global Mesh Labs and goTenna, said:
“In many parts of the rural and developing world internet connectivity is both expensive and intermittent. More solutions tailored to these situations would certainly facilitate the use of cryptocurrencies in places where it is needed. Bitcoin transactions can be made over alternative low-bandwidth transport layers like mesh radios and SMS.”
The Republic of the Marshall Islands is also preparing to introduce its own sovereign digital currency, in order to reduce or eliminate the nation’s dependence on the US dollar, which it has used for decades.