Plans are underway from the Bahamas' Central Bank to unleash its digital coin. The announcement was made recently, and the bank said that this was in a bid to make the economy more resilient. Having their digital currency will ensure the economy remains stable even in times of natural disaster occurrences.
The governor of the central bank, John Rolle, made this announcement at Sandals Emerald Bay when he was delivering his speech at a Business Outlook for Counsellors Limited's Exuma. That was according to a local news publication that featured on Nassau Guardian on Oct. 25.
John believed that digital coins possess the ability to unlock the country from depending on cash. He added that the effect would even be more visible during times of a natural disaster.
“It would permit wireless restoration of payments connectively, 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.”
The crypto coin is developed under the guidance and authority of Project Sand Dollar. It is going to be Bahamas' first-ever fiat currency. The central bank expects that the coin will also have a card and a digital wallet. The card will hold identical information for the users of the fiat currency.
Effects of Natural Disasters on the Economy
The central bank governor noted that the recent hurricane did significant damages to buildings of the Grand Bahamas and Abaco, which made local banks to close down their activities for some time.
Another thing is power grids in affected areas after a natural disaster will not be operational for weeks or even months. An example is in Puerto Rico, 11 months have now elapsed after Hurricane Maria, and some areas are still in the dark without electricity.
Richard Myers, a decentralized applications engineer at Global Mesh Labs and goTenna, said on the matter:
“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 Marshall Islands has also started developing a national digital coin in a bid to avert the dependence on the US dollar in the country. It is believed that the Islands have been using the USD for long and they are looking to have their digital currency.