Earlier this week, K Peter Turnquest, Deputy Prime Minister and Minister of Finance of the Bahamas, announced at the Bahamas Blockchain and Cryptocurrency Conference that the development of a completely digital payment service is the way to go to move forward in this era of governance. Because the Bahamas is a nation of over 700 islands and cays, access to a bank may mean traveling by sea or air a great distance for many in the nation.
Turnquest stated: “A digital Bahamian currency is especially important for the many islands families as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, we must offer financial services digitally and securely.”
The measure aims to set up a national cryptocurrency to aid the unbanked and ease the process of doing business in the multiple islands that make up the nation.
The Bahamian archipelago, located east of Florida in the Atlantic Ocean, uses two fiat currencies. The Bahamian Dollar and the USD are used simultaneously but since the Bahamian dollar is pegged to the value of the USD at a 1:1 ratio, in reality, the Bahamas does not have its own currency. Creating a cryptocurrency may allow for a truly native dollar to reflect the islands 9 billion USD gross domestic product.