3. Bahamas

Sand Dollar (Picture: Shutterstock)

The central bank of the Bahamas published its project for a digital dollar on Christmas Eve, 2019. The so-called Sand Dollar will be introduced step by step and is part of a broader strategy to modernize the payment systems on the island.

The bank emphasized the importance of giving access to digital services to people who so far are excluded from banking. Inclusion is the main target of the bank's modernization strategy.

A further goal of the «Sand Dollar»-project is the direct participation of non-banks in the domestic payments system. The bank hopes to eliminate the cost of cash-handling by launching the Sand Dollar. ist der Einbezug von Nicht-Banken ins einheimische Zahlungssystem. Zudem erhofft sich die Zentralbank, dass der Sand Dollar die Kosten des Bargeldhandlings zu eliminieren vermag.

4. Uruguay

Central Bank of Uruguay (Picture: Shutterstock)

The central bank of Uruguay was an early mover in digital central bank currency initiatives. It launched a pilot for an e-Peso in November 2017, reacting to a decline in the use of cash. It also hoped to provide better access to financial services to all citizens.

The pilot was concluded in April 2018. As the BIS noted in a report, the project was deemed a success and the central bank is now working on a thorough evaluation of the project. Questions regarding the effects on the economy, on business and about the role of the central bank are the focus of the research.

5. Switzerland

BIS Headquarters in Basel – Cooperation Partner of the SNB

The Swiss National Bank is pursuing a different path in the development of digital money for financial market participants. Together with the stock market operator SIX, the SNB is working on the integration of digital central bank money into the distributed ledger technology infrastructure. Such digital money is aimed at making the transaction of digital securities between financial services firms easier.

The project is taking place in connection with the innovation hub founded together with the BIS in Basel. The cross-national authority has three such hubs, the other two being launched in Hong Kong and Singapore.

The announcement of the BIS that the SNB was one of the partners for such technological research was a major success for the Swiss, given that it had been seen as slightly more reluctant than others in its approach to digital currencies.