The International Monetary Fund has turned its attention to the Bahamas' central bank digital currency, the Sand Dollar, and proposed more regulatory supervision and education.
In a report on consultations with the Caribbean country on Monday, the International Monetary Fund said its executives recognized the potential of the Sand Dollar to enhance financial inclusion and recommended that the Central Bank of the Bahamas accelerate its educational campaigns and to further strengthen its internal capacity and supervision.
The consultations were to some extent the result of several previous IMF warnings to many countries against adopting digital assets - but many of them did not include central bank digital currencies, As reported by Coin Telegraph.
The recommendation followed the conclusion of the Article IV consultations in the Bahamas last Wednesday. According to the International Monetary Fund, during these consultations, a team of economists visits a country to assess economic and financial developments and discuss the country's economic and financial policies with government and central bank officials.
In addition to recommending financial education to the public in the Bahamas, the International Monetary Fund has alluded to the importance of a strong regulatory and supervisory framework for digital assets. During an interview at SALT's Crypto Bahamas Conference in May, Bahamian Prime Minister Philip Davis told Coin Telegraph that the region has a regulatory system in place that will enable crypto businesses to operate in their jurisdiction.
Davis' office also said in April that the government would make it possible to pay taxes using digital assets by working with the central bank as well as with the private sector.
