FTX fiasco hits Bahama Sand Greenback adoption

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

Bahamian authorities have blamed the FTX implosion and the Covid-19 pandemic as contributing elements to the sluggish 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 identify within the historical past books as one of many very first nations to formally launch its central financial institution digital foreign money (CBDC). Nonetheless, practically three years down the road, the blockchain-based Bahamian Sand Greenback is but to achieve vital traction amongst residents.

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

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

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

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

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

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 variety 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 change’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 fees, Bankman-Fried has continued to disclaim any wrongdoing that will have led to the autumn of the change, and his last trial is scheduled for Oct.2.