The Bahamas becomes the latest to announce its intention to introduce a cryptocurrency of its own through its central bank.
The Island nation which is viewed by some as a tax haven joins a growing list of countries that plan to test the opportunity of a blockchain based digital currency. Sometime ago Thailand introduced the project Inthanon. It was created by its own central bank to streamline interbank clearance and settlement system through the use of blockchain technology.
The Deputy Prime Minister of Bahamas, K. Peter Turnquest stated that a pilot digital currency will be introduced by the Central Bank of The Bahamas. He announced this at the Bahamas Blockchain and Cryptocurrency Conference held recently.
Banking the unbanked
Many commercial banks in the Island nation have been downsizing, thereby leaving communities without necessary banking services. However, the digital currency has the ability to offer a solution. Turnquest who is also the Minister of Finance said that the digital currency would assist in banking the unbanked.
The Deputy Prime Minister stated that the production of a modern fully digital payment service is the way to go for this era of governance. He said that a digital Bahamian currency is especially important for the many families living in the islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services.
Turnquest was optimistic that a digital currency would help solve the country’s transport system. He said that as an island nation, where transportation can be an inconvenience to many especially the elderly, and costly, the nation must offer services digitally and securely.
Businesses set to benefit
As a result of its policy that ensures shareholder privacy and the relaxation of tax obligations on foreign earned income, Bahamas has attracted businesses from around the world. Thus, the introduction of a cryptocurrency will go a long way in benefiting the businesses established there.
Companies will now transact their business in a more private manner than they currently do. For example, clients of the Big Four accounting firms can now avoid using the banking system that makes it difficult for them to avoid the taxes imposed by foreign nations.
In order to avoid corruption in the country, Bahamas intends to incorporate the blockchain technology into the government system. Issuance of certificates to people who have completed studies at the National Training Agency will be done via blockchain system.