Central Bank of The Bahamas selects NZIA Limited as technology provider for digital currency provider

The Central Bank of The Bahamas has announced key technology solutions providers for its planned digital fiat currency project.

The digital fiat currency project was first reported in June 2018 by Jamaica Observer. Later in August, the central bank invited submission of expressions of interest (EOI) from qualified firms to supply blockchain or other robust technology solutions for the project.

In a press release dated March 01, the bank said that the initiative will be carried out under the name “Project Sand Dollar” and will aim to modernize the country’s payments system.

“The Central Bank expects that at the conclusion of this project all residents in The Bahamas will have equal, expanded access to modernised digital payments capabilities. A concurrent reduction in cash transactions is also expected,” it said.

“The evolved Bahamian payments infrastructure should reduce service delivery costs, increase transactional efficiency and improve the overall level of financial inclusion in communities throughout the archipelago.”

The bank has announced NZIA Limited as the preferred technology solutions provider for the project. The company will design and implement the digital fiat currency system.

“NZIA Limited brings together the collective know-how and expertise of IBM, a leader in enterprise blockchain, along with Zynesis Pte. Ltd., a Singapore-based software development company specializing in blockchain solutions,” the central bank noted.

Furthermore, the central bank said that to ensure regulatory compliance of the digital fiat currency, appropriate policy and legislative reforms will be made. To that end, it said that the draft regulatory Central Bank of the Bahamas Bill, 2019, is expected to provide the foundation to develop regulations to govern the instrument.