The IMF recognized the potential of the digital currency of the Central Bank of the Bahamas

The International Monetary Fund proposed that the Central Bank of the Bahamas introduce training programs on the use of the Sand Dollar and develop additional rules for regulating digital assets.

Earlier this week, the International Monetary Fund (IMF) held a consultation with the government of the Bahamas, where discussed economic and financial situation in the country. The IMF drew attention to the digital currency of the Central Bank of the Bahamas, Sand Dollar, launched in October 2020.

The Fund recognized that this state-owned stablecoin does have great potential to expand the population’s access to financial services. Therefore, the department recommended that the central bank launch educational programs on the use of the digital Bahamian dollar to strengthen its position and work out additional measures to supervise the developing sector of virtual assets.

Earlier, the Prime Minister of the Bahamas, Philip Davis, said that the country plans to introduce a regulatory regime in which local residents will be able to pay taxes using digital assets, including the Sand Dollar. The government will start working on this issue with the country’s central bank, as well as with the private sector.

Better regulation of cryptoassets will prevent their use for tax evasion or circumvention of sanctions, and will also encourage wider adoption of the central bank’s digital currency, Davis said.

To date, the Bahamas, Saint Kitts and Nevis, along with Nigeria, have become the only countries to officially launch their own digital currency. The People’s Bank of China (PBOC) is also actively testing the digital yuan, conducting large-scale trials in various Chinese cities and provinces.

According to a recent study by the Bank for International Settlements (BIS), about 90% of central banks are exploring or testing a government stablecoin.