The Central Bank of the Bahamas has decided to oblige all commercial banks in the country to accept the digital Bahamian Sand Dollar. Reason: the popularity of this form of national currency among local residents is falling.

Central Bank Governor John Rolle hopes that commercial banks will be able to popularize the CBDC. The new regulation will come into force in 2026. The central bank is especially hoping for the use of the state stablecoin in mobile payments.

The Sand Dollar was launched in 2020 to ease access to banking services. According to Reuters, the Sand Dollar currently accounts for less than 1% of the currency in circulation in the Bahamas. In August 2023, digital wallet replenishment fell by 75% to $12 million, while in August 2022, the figure peaked at $49.8 million.

Unlike the Reserve Bank of India (RBI), which offered rewards to users during its digital rupee trials, the Bahamas has no plans to provide financial incentives for using the Sand Dollar. India’s retail digital rupee transactions reached a million in December, but the number of daily CBDC transactions fell to 100,000 after the withdrawal of financial incentives.

In 2021, the international company Mastercard, in partnership with the payment service Island Pay, released a debit card supporting Sand Dollar, allowing residents of the Bahamas to pay for goods and services using CBDC.