Bahamas Enforces CBDC Distribution Amid Low Adoption Rates

Jul 11, 2024

Bahamas Enforces CBDC Distribution Amid Low Adoption Rates
Bahamas Enforces CBDC Distribution Amid Low Adoption Rates
Bahamas Enforces CBDC Distribution Amid Low Adoption Rates

The Bahamian government is now requiring commercial banks to distribute the Sand Dollar, its central bank digital currency (CBDC), as part of efforts to increase its adoption. Despite early incentives, such as rebates for using the CBDC, public interest has remained low, with the Sand Dollar comprising less than 0.41% of the currency in circulation. This move mirrors strategies seen in other countries, such as Nigeria, where initial incentives failed to drive significant adoption, leading to more forceful measures. The Central Bank of Nigeria's actions, including pulling cash off the streets, resulted in a rise in CBDC usage from 0.5% to 6% but also sparked protests and riots due to cash shortages.