The Bahamas’ central bank plans to mandate all local banks to accept the country’s digital currency by 2026. Launched in 2020 to expand banking access, the “Sand Dollar” aims to become more integrated into the financial system, according to Governor John Rolle.

Currently, the Bahamas’ CBDC represents less than 1% of the currency in circulation. Wallet top-ups for the Sand Dollar have significantly decreased, from $49.8 million to $12 million as of August 2023.

The Bahamas is not the only country facing challenges with CBDC adoption. Nigeria and Jamaica also report minimal usage of their digital currencies. In India, the e-rupee saw a sharp decline in activity after local banks stopped providing incentives to users. The Reserve Bank of India achieved 1 million retail transactions last December, but daily transactions dropped to about 100,000 once incentives were removed, indicating a lack of organic demand.

Governor Rolle mentioned that the Bahamas is unlikely to provide any financial incentives to increase CBDC usage, unlike India.

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