tl;dr
The Bahamas plans to force its commercial banks to support its Sand Dollar CBDC, the country’s central bank governor has revealed. Sand Dollar, launched in October 2020, aimed to boost financial inclusion and transactional efficiency but has not gained the expected traction. Governor John Rolle has ...
The Bahamas is set to mandate support for its Sand Dollar CBDC by commercial banks in a bid to increase adoption and transactional efficiency. The move has sparked a global debate, with concerns about competition for bank deposits and disintermediation in some jurisdictions.
Since its launch in October 2020, the Sand Dollar, as the world's first central bank digital currency (CBDC), aimed to boost financial inclusion and transactional efficiency. However, it has not gained the expected traction, prompting Governor John Rolle to explore strategies for mandatory CBDC support for commercial banks.
The imposition of a CBDC on commercial banks has divided opinion globally, with some expressing apprehension about digital currencies while others see it as a net positive for consumers. The Central Bank's intervention is deemed critical for the survival of the Sand Dollar, which had only attracted $2.1 million of the cash in circulation by February 2021, accounting for a mere 0.5%.
In some jurisdictions, concerns about digital currencies leading to competition for bank deposits with central banks have been raised. The European Central Bank (ECB) and national banking associations in Italy, Germany, and other leading economies have demanded that banks be placed at the heart of the CBDC movement and that their interests be protected. However, the ECB has dismissed such fears, stating that holding limits and zero interest will disincentivize residents against holding the digital currency.
While the Central Bank of the Bahamas seeks to ensure the survival and success of the Sand Dollar, the global conversation around CBDCs continues to evolve, with various perspectives on the potential impact and implications of mandatory support by commercial banks.
More about Rush Street Interactive Inc
Rush Street Interactive Inc
Rush Street Interactive, Inc. is an online casino and sports betting company in the United States and Latin America. The company is headquartered in Chicago, Illinois.
Industry: TRADE & SERVICES
Sector: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION
Market Cap: 2011703000
Dividend Yield: None
EPS: None
P/E Ratio: -0.17
ROE: 10.48%
Beta: -0.0158
Volume: 746228000
Current Price: 10.03
50-Day Moving Average: 0
200-Day Moving Average: 0.888