Vol. 18 No. 2 (2024): Revista Derecho en Sociedad
ESSAYS

Lessons from the first implemented Central Bank Digital Currency: the Sand Dollar

  • Jeroen Haans
DOI: https://doi.org/10.63058/des.v18i2.243

Published 2024-09-24

Keywords

  • Sand Dollar,
  • Central Bank Digital Currency,
  • monetary policy,
  • financial inclusion,
  • digital currency adoption,
  • Bahamas
    • ...More
    Less

How to Cite

Haans, J. (2024). Lessons from the first implemented Central Bank Digital Currency: the Sand Dollar. Derecho En Sociedad, 18(2), 181p – 192p. https://doi.org/10.63058/des.v18i2.243

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Abstract

The emergence of Central Bank Digital Currencies (CBDCs) has sparked considerable discussion within monetary policy circles, particularly as nations explore the potential benefits and challenges of implementing digital currencies. This paper focuses on the Bahamian Sand Dollar, the world’s first fully operational CBDC, providing an in-depth analysis of the factors that drove its development, the structure of its implementation, and the obstacles it currently faces, especially regarding its relatively low adoption rates among the population. Through the lens of the Sand Dollar case study, the paper outlines four crucial lessons for the successful rollout of future CBDCs. These include the importance of making the digital currency attractive to users, setting broad and clear policy objectives, investing heavily in public education to foster understanding and trust, and embracing a long-term perspective that allows for gradual integration and adoption. The insights gained from this study offer valuable guidance for other countries considering the introduction of their own CBDCs.

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