A “strong supervisory and regulatory framework” for digital assets was also recommended by the International Monetary Fund (IMF) in the Bahamas.
According to the International Monetary Fund IMF, the Bahamas’ central bank digital currency (CBDC), the Sand Dollar, should be subjected to more regulation and instruction.
International Monetary Fund (IMF) executive directors “recognised the potential of the Sand Dollar to foster financial inclusion” and urged the Central Bank of The Bahamas “to ramp up its education campaigns and to proceed to strengthen internal capacity and oversight” during a meeting on Monday. However, many of the IMF’s prior cautions concerning digital assets did not cover CBDCs, therefore this consultation was a break from many of them.
An Article IV consultation was completed in the Bahamas on Wednesday, leading to this suggestion. “To review economic and financial trends and discuss (with) government and central bank officials” is what happens during an IMF consultation, according to the IMF.
A “strong supervisory and regulatory framework” for digital assets was also recommended by the International Monetary Fund (IMF) in The Bahamas. It was reported in May that Bahamas Prime Minister Philip Davis told Cointelegraph that the region’s legal framework would allow crypto firms to operate under its jurisdiction during an interview at SALT’s Crypto Bahamas conference. It was also announced in April by Davis’ office that the government will “allow payment of taxes using digital assets” by collaborating with financial institutions and the central bank.
CBDCs have been introduced in the Bahamas and Nigeria, but other countries, like China, are testing digital currencies. A survey of 81 central banks conducted in 2021 by the Bank for International Settlements Monetary and Economic Department found that 90 percent were “engaged in some form of CBDC work,” and more than 60 percent were “likely to or might possibly concern a retail CBDC in either the short or medium term.”