Phase one allows transfers from digital wallets to local deposit account
NASSAU, BAHAMAS — The Central Bank of The Bahamas has completed the initial integration of the Bahamian dollar digital currency, Sand Dollar, with the Bahamas Automated Clearing House (BACH) system.
A milestone for the Central Bank, this latest achievement forges a necessary processing link with local banks.
Sand Dollars can now be transferred from customers’ digital wallets to any deposit account held at a local clearing bank.
Explaining the importance of this integration, Central Bank Governor John Rolle said: “This pass-through link between Sand Dollar wallets and deposit accounts provides essential connectivity of the digital currency infrastructure to the banking system.
“We are that much closer to achieving a seamless ecosystem between the digital and physical versions of the Bahamian currency.
“After months of beta testing, troubleshooting and refining the transaction process, we launch this phase with confidence in the integrity of the system that we have created.
“What we are saying, especially for businesses that we will be enticing to adopt the Sand Dollar, is that as they look to the near to medium-term, the deposit of their register receipts can increasingly be made through a secure electronic transfer rather than a logistically challenging transportation of physical cash.”
To enable BACH transfers, users holding Sand Dollar mobile apps will pair the wallet to a single deposit bank account of choice. Users will be able to make transfers that will be concluded during the ACH’s daily operating hours between 8.30am and 4.30pm, Monday through Friday.
According to a statement from the Clearing Banks Association (CBA), “the integration of Sand Dollar with BACH marks an important milestone in the journey towards increased adoption and use of the central bank digital currency in The Bahamas”.
“We are confident this integration with the banking system will prove beneficial for personal and business users, who will now enjoy the benefits of a seamless link between fiat cash and digital currency,” the association said.
“The CBA supports the Central Bank in its effort to promote efficiency in the domestic payments space and looks forward to working together to further promote financial access and inclusion.”
Regarding the adoption and use of the digital currency, Rolle said: “We view Sand Dollar as complementary to physical cash, in that the Bahamian currency can move between physical and digital spaces without losing any value.
“Sand Dollar is, in fact, adding value to the marketplace by providing non-discriminatory access to payment systems without regard for geography and strengthening The Bahamas’ reputation as a leader in central bank digital currencies.
“At present, statistics are showing pleasing promise for our digital currency.
“With this launch of phase one ACH integration, we anticipate an uptick in Sand Dollar adoption as more merchants and consumers grasp the benefits and ease of utilizing a digital version of the Bahamian dollar.”
Phase two of the Sand Dollar-BACH integration will allow users to top-up their digital wallets through third-party bank transfers from the linked deposit account.
Development continues for this phase; however, the Central Bank expects this facility to be available during the second quarter of the year.
More details on the Sand Dollar, BACH transfer process and plans for enhancement can be found on the Sand Dollar website at www.sanddollar.bs.
Loading ...
