FTX fiasco hits Bahama Sand Greenback adoption

After FTX blew up, the Bahama Sand Greenback couldn’t preserve its momentum.

Bahamian authorities have blamed the FTX implosion and the Covid-19 pandemic as contributing components to the gradual adoption price of the Sand Greenback, the nation’s central financial institution digital foreign money (CBDC) launched in 2020.

FTX collapse – an enormous blow for Sand Greenback adoption 

Earlier in Oct. 2020, the Bahamas put its title within the historical past books as one of many very first nations to formally launch its central financial institution digital foreign money (CBDC). Nevertheless, practically three years down the road, the blockchain-based Bahamian Sand Greenback is but to realize important traction amongst residents.

Regardless of being powered by distributed ledger know-how (DLT), similar to bitcoin (BTC) and different cryptocurrencies, the Sand Greenback is completely totally different from common crypto belongings, as it’s state-backed and pegged to the U.S. greenback. 

In response to Bloomberg, Kimwood Mott, the mission supervisor on the Central Financial institution of the Bahamas, has blamed the gradual adoption price of the nation’s CBDC on the lingering Covid-19, and the abrupt shutdown of the Bahamas-headquartered FTX trade final 12 months.

The Covid-19 pandemic completely crippled common operations within the vacationer nation for a number of months and made it inconceivable for the federal government to enlighten residents on the workings of the Sand Greenback. 

Now, sources say an unlimited array of crypto-averse Bahamians view the Sand Greenback as crypto somewhat than merely a digital illustration of the Bahamian greenback. The FTX implosion has worsened the adoption disaster.

“I’m all the time telling folks that this isn’t a cryptocurrency. But when individuals don’t know what a cryptocurrency or a CBDC is, then I’m simply making a press release.”

Kimwood Mott, Central Financial institution of the Bahamas.

In the identical vein, Kendric Dames, a Nassau-based barber and Sand greenback fanatic echoed the identical sentiments, making it clear that “a number of residents nonetheless suppose the CBDC is a crypto” and that’s discouraging them from utilizing it.

Established by the disgraced Sam Bankman-Fried and Gary Wang in 2019, the now-defunct FTX trade’s headquarters was moved from Hong Kong to the Bahamas in Sept. 2021 earlier than the corporate filed for Chapter 11 chapter final Nov.

Whereas FTX co-founder, Gary Wang, and former Alameda CEO, Caroline Ellison has already pleaded responsible to prison costs, Bankman-Fried has continued to disclaim any wrongdoing that will have led to the autumn of the trade, and his remaining trial is scheduled for Oct.2.

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