The Bahamas central bank tapped NZIA Limited to build its digital currency system. The announcement came on March 1, following more than a year of planning for Project Sand Dollar, which aims to creat
The Bahamas central bank tapped NZIA Limited to build its digital currency system. The announcement came on March 1, following more than a year of planning for Project Sand Dollar, which aims to create a blockchain-based version of the Bahamian dollar.
NZIA combines IBM's blockchain expertise with Zynesis Pte. Ltd., a Singapore-based software firm specializing in decentralized systems. Zynesis has built cryptocurrency trading platforms, managed token sales for blockchain startups, and collaborated with Singapore's government technology agency to design a decentralized procurement system for smart buildings.
The Sand Dollar project addresses a specific problem in the archipelago. Commercial banks have closed branches on many family islands, leaving residents without banking access. The digital currency would provide payment options to those communities while reducing the volume of physical cash in circulation.
The central bank projects the system will cut service delivery costs, speed up transactions, and broaden financial inclusion across the islands. The bank will begin pilot testing in selected family island communities while the government pursues legislative changes. The draft Central Bank of the Bahamas Bill, 2019, under government review, will establish the regulatory framework governing the currency.
That framework must address exchange controls, money laundering prevention, counterterrorism financing rules, and ensure the digital currency supplements rather than replaces traditional banking.
Kevin Peter Turnquest, deputy prime minister and finance minister, introduced the project at the Bahamas Blockchain and Cryptocurrency Conference in June 2018. He grounded the initiative in accessibility. "The production of a modern fully digital payment service is the way forward for this era of governance," he said. "A digital Bahamian currency is especially important for the many family islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely."
Turnquest expressed hope that Grand Bahama would become a model for digital-first governance in the region. "Digitization of our government and financial services complements both our ease of doing business initiatives and our digital Bahamas framework," he said.
Beyond the currency, Turnquest saw blockchain applications spreading across government. The government could issue diplomas and educational credentials on the blockchain. Digital identity systems could replace paper documents. Business licenses, passports, and national insurance information could all be recorded on a decentralized ledger, allowing citizens to maintain and share their records securely.
