CBDC: The sand dollar comes in October

Fresh sustainable wind for portfolios?

Index investments such as exchange-traded index funds – i.e. ETFs – with a sustainable focus are increasingly in demand. Not surprisingly, after all, ETFs are more popular than ever. In addition, the environment, social issues and corporate management issues are issues of our time. But what can sustainable ETFs really do?

The Bahamas are taking the lead in the adoption of a central bank digital currency (CBDC). It should be available across the country from October

The island state of Bahamas announced in summer 2018 that it wanted to develop a digital central bank currency. A year and a half later, in December 2019 , pilot tests began on two islands in the country. The success can now be seen from the fact that the digital fiat currency called „Sand Dollar“ from Octobercan be traded across the country. The CBDC comes just 28 months after the first official announcements.

The reasons for the introduction of the CBDC are diverse. As early as 2018, the Central Bank of the Bahamas (CBOB) observed a decline in commercial banks on the islands. Only a fraction of the country’s more than 700 islands are inhabited – this meant that large parts of the population were excluded from the banking system.

Sand Dollar CBDC aims to solve acute problems

Hurricane Dorian also crippled many banks last late summer. In contrast, the telephone network was functional again within a few days. In 2017, over 90 percent of Bahamians owned a smartphone that can be used to access the CBDC.

Another benefit in times of a pandemic is that users don’t have to physically touch cash during interactions. At the same time, they want to make it easier for entrepreneurs to comply with stricter international know-your-customer regulations.

The sand dollar is pegged 1: 1 to the Bahamas dollar (BSD), which in turn is pegged 1: 1 to the US dollar (USD). So far, only 48,000 sand dollars are in circulation. Also Brazil is about to introduce a CBDC – in 2022 should they become operational.

Sand dollars (German: sand dollars) are also a sea urchin class. The skeletons washed up on the beach and bleached by the sun are reminiscent of silver coins. Is there a reason to be baptized in this name?