Bahamas Makes Strides Towards Mainstream Crypto Adoption

GB Market Commentary 22/04/2022

by Marcus Sotiriou

Global crypto adoption continues to grow as the Bahamas have now allowed citizens to pay taxes in digital assets. Prime Minister Philip Davis said, "We have a vision to transform the Bahamas into the leading digital asset hub in the Caribbean." The announcement of their strategy to increase digital asset adoption comes just a week before the Crypto Bahamas conference, which will be attended by guests such as former U.K. Prime Minister Tony Blair, former U.S. President Bill Clinton and National Football League quarterback Tom Brady.

In addition, the government will allow residents to use the Bahamas CBDC (central bank digital currency), called the Bahamas sand dollar, to access digital assets. A report from PwC last year showed that amongst the 60 CBDCs that are in the works worldwide, the Bahamas ‘Sand Dollar’ is ahead of the curve. PwC ranked the top 10 retail CBDC initiatives around the world based on project maturity, with the Sand Dollar coming first.

CBDCs aim to increase efficiency and in payments, cut costs of financial services and tighten up control on cash-enabled fraud. According to a more recent report from PwC, now the vast majority of central banks are considering launching a CBDC. Analysts at PwC said, “We expect that CBDCs will greatly benefit cross-border transactions and economies of all relevant jurisdictions.” Despite the issues of privacy associated with CBDCs, I think they will be a significant catalyst for mainstream adoption of cryptocurrencies, as it allows for easier on-ramps to blockchain rails.