Eleven years after the birth of Bitcoin, the world’s first cryptocurrency, virtual currencies are becoming more and more common. This has led companies, organizations and even governments around the world to consider the possibility of launching their own digital assets. With several countries taking the lead in this sector. Thus, the government of the Bahamas prepares everything to launch its virtual government currency in October.
The war on cryptocurrencies
For a long time, governments around the globe saw crypto as a threat to their power. Well, by stating that money should not be controlled by any centralized entity. Cryptocurrencies represent a direct challenge to the monopoly that governments have held on monetary policy for more than a century.
Therefore, it is normal that the first reaction of governments to the advancement of Bitcoin and other crypto assets was to restrict their use. Going from the denial of the character of cryptocurrencies as real money, valid for financial and commercial transactions. Until the direct prohibition of the use of these virtual currencies.
However, the genie has already left the bottle and it is impossible to put it back. No matter how strict the measures taken by the governments of the world have been. Cryptocurrencies have continued to be used for transactions of all kinds. The adoption of virtual currencies is becoming more widespread.
This is the reason why governments seem to be taking a new direction in their relationship with cryptocurrencies. Leaving aside the idea of controlling or prohibiting them, to try to compete with them taking advantage of their qualities. Starting the development of their own government virtual currencies, which they hope to have the benefits of a cryptocurrency, but under state supervision. As would be the case with the Bahamian currency.
Bahamas prepares for October
Thus, the government of the Caribbean island has announced through a statement and a Tweet from the Central Bank of the Bahamas, that it will begin the gradual launch of its virtual currency on October 20. So the “Sand Dollar,” as the Bahamas virtual currency will be called, could be the first government virtual currency in history.
During the first phase of the launch of this government virtual currency, Bahamian financial institutions, such as commercial banks, will adapt their system to carry out transactions with the currency. While, in the second phase planned for mid-2021, the infrastructure of the government sector and private companies will be prepared for its use.
In addition, the Bahamian government would have established strict cybersecurity controls on its virtual currency. To provide guarantees to its population in the use of this new digital asset. With this, if its launch is successful, the Bahamian “Sand Dollar” would surpass other currencies such as the virtual Yuan, which was expected to be the first government virtual currency to hit the market.