The Bahamian government is set to compel commercial banks to distribute its central bank digital currency (CBDC), known as the Sand Dollar. Despite the CBDC accounting for less than 0.41 percent of the currency in circulation and its usage declining over time, the central bank has chosen to take a different approach. Following an interview with Central Bank of the Bahamas Governor John Rolle, it was revealed that regulations would be implemented to force commercial banks to distribute the CBDC. This move comes after initial attempts to incentivize adoption with rebates and discounts failed to gain traction.
Similar behavior has been observed in Nigeria, where the central bank faced low CBDC adoption rates. In an effort to increase adoption, the central bank offered discounts on cab fare and announced the withdrawal of cash from circulation. This resulted in a cash shortage and subsequent protests, but ultimately led to a rise in CBDC adoption.
While the Central Bank of The Bahamas is taking a less extreme approach compared to Nigeria, it highlights the difference between public and private sector endeavors. In the private sector, businesses that do not meet market demand either close down or pivot their business model. However, government projects are not as quick to shut down due to the absence of voluntary funding and the ability to resort to force.
Unlike businesses, governments have the power to force the use of CBDCs. This is evident in the cases of Nigeria and The Bahamas, where the governments compelled adoption through various means. It is worth considering that if something needs to be forced, it may not be a good idea in the first place.
Bahamians Resistance to CBDCs Overruled Theyre Now Obligated to Utilize Them