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- A cryptocurrency was added to the balance sheets of a central bank. This little known achievement was unlocked by the Central Bank of Bahamas.
- The pilot tests for the digital currency began at Exuma in December, 2019 and ended at Abaco in January this year.
- Almost 30 Blockchain projects are under various phases of experiments for future implementation in the country.
For the very first time in history, a cryptocurrency was added to the balance sheets of a central bank. This little known achievement was unlocked by the Central Bank of Bahamas, back in April when it included its very own digital currency – Sand Dollar to its balance sheets.
Sand Dollars Worth $48000 Included in the Balance Sheets
The Sand Dollar is the digital version of the Bahamas Dollar. The pilot tests for the digital currency began at Exuma in December, 2019 and ended at Abaco in January this year. The project Sand Dollar was an initiative that aimed at continuing the Bahamian Payments System Modernization Initiative (PSMI) which began in the 2000s. The main aim of the government was to enhance the financial inclusion of the users, to provide efficient payment systems that will be accessible to everyone. The pilot tests were a step towards launching its very own Central Bank Digital Currency (CBDC) which had the exact same name.
The financial statement that was released by the Central Bank of Bahamas back in April revealed that it had put the Sand Dollar worth $48000 for user circulation. The report read that the bank made a pilot testing in Exuma and had issued sand dollars in circulation worth the above mentioned amount and distributed them to various retailers. The sand dollar which is aimed to digitise the Bahamas dollar is anticipated to launch at the fourth quarter of this year.
Need for a Proper Framework to Keep a Check On Cryptocurrency Report
Furthermore at the Federal Reserve Bank of Boston things are more inclusive. Almost 30 Blockchain projects are under various phases of experiments for future implementation in the country. We simply cannot ignore the fact that cryptocurrencies from being just a mere technology have taken the form of digital currencies that are issued by central banks. The spectrum for cryptocurrency treatment and reporting has also increased in the process. And despite all major security and market regulators, there still lacks a proper framework that determines how crypto must be valued or be reported.
Cryptocurrency can be Classified as a New Asset Class
A major alternative that has been suggested by the regulators is marking their price to the market. This means that the price of the cryptocurrency will depend on the market fluctuations. In a way it also checks on the volatility that is associated with Stablecoin, Altcoin and CBDCs. Moreover, Another alternative that has been suggested to recognise cryptocurrency as an entirely new class asset. Although, this may sound a strict measure to control the growth of cryptocurrencies but this is a more logical approach as cryptocurrency no longer fit in their existing asset class.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
