The IMF recommends the Bahamas to accelerate their CBDC awareness campaigns

The International Monetary Fund (IMF) has turned its attention to the Central Bank of the Bahamas (CBDC) digital currency, the sand dollar, and has proposed additional regulatory oversight and education.

Reporting on a consultation with the Caribbean nation on Monday, the IMF said its executive directors “recognized the potential of the sand dollar to promote financial inclusion” and recommended that the Central Bank of the Bahamas “accelerate its awareness-raising campaigns and further strengthen internal capacity and oversight.” The consultation was something of a departure from several previous IMF warnings to many countries about adopting digital assets — but many of these didn’t include CBDCs.

The recommendation came following the conclusion of an Article IV consultation in the Bahamas last Wednesday. According to the IMF, during such a consultation, a team of economists visits a country “to assess economic and financial developments and to discuss the country’s economic and fiscal policies with government and central bank officials.”

Alongside recommending financial education for the public in the Bahamas, the IMF noted the importance of a “robust supervisory and regulatory framework” for digital assets. During an interview at SALT’s Crypto Bahamas conference in May, Prime Minister of the Bahamas Philip Davis told Cointelegraph that the region has a regulatory regime that allows crypto companies to operate within their jurisdiction. Davis’ office also said in April the government will “enable the payment of taxes with digital assets” by working with both the central bank and the private sector.

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To date, the Bahamas and Nigeria are the only two countries to have formally adopted CBDCs, but other nations, including China, have been experimenting with digital currencies. On Friday, the Monetary and Economics Division of the Bank for International Settlements said a 2021 survey of 81 central banks found that 90% were “engaged in some form of CBDC work” and more than 60% “probably or possibly some retail work.” -CBDC either in the short or medium term.”