The Central Bank of The Bahamas has announced plans to require all local banks to provide access to the country's central bank digital currency (CBDC), known as the "Sand Dollar," by 2026. This move aims to boost the adoption of the digital currency, which currently accounts for less than 1% of the country's currency in circulation.

According to the central bank's governor, John Rolle, the mandate is intended to expand banking access, as the Sand Dollar was launched in 2020 for this purpose. However, the CBDC has faced challenges, with wallet top-ups declining by 75% from $49.8 million to $12 million in August 2023.

The Bahamas is not alone in its CBDC adoption struggles. Other countries, such as Nigeria and Jamaica, have also reported minimal usage of their digital currencies . Similarly, India's e-rupee has seen a sharp decline in activity after local banks stopped providing incentives to users .

Rolle stated that the Bahamas is unlikely to offer financial incentives to encourage the use of its CBDC, unlike the approach taken in India. The central bank's focus is on mandating the integration of the Sand Dollar into the local banking system, rather than relying on artificial demand stimulation.

This initiative by the Central Bank of The Bahamas reflects the ongoing challenges faced by central banks in driving CBDC adoption and the need for a balanced approach that considers both regulatory measures and user preferences.