The Bahamas was the first country to fully implement a CBDC in October 2020. The Sand Dollar’s digital currency was created to help the archipelago nation become more financially inclusive.
FTX, one of the world’s major cryptocurrency exchanges, launched a Bahamian company in September 2021 and plans to grow in the country.
The government said in a whitepaper that their approach to digital assets is based on successful precedents from other countries such as Liechtenstein, France, Gibraltar, and Switzerland.
The Bahamas also looked into the current and proposed legislation in the United Kingdom, the United States, the European Union, Singapore, Dubai, Japan, and Australia.
The government has attempted to create a balanced policy that permits crypto to develop while also assuring their safety.
In addition, the legislation adheres to best practices and high standards, as well as international duties to ensure a healthy environment for creativity and opportunity.
Furthermore, the Bahamas’ government is committed to combating money laundering, as well as illegal activities and financing.
The administration intends to keep its legal frameworks for virtual assets updated and in full compliance with international standards, like the FATF’s recommendations.
Furthermore, by December 31, 2023, the Bahamas will publish an annual update and perform a complete policy analysis to ensure that their long-term digital asset policy is clear, effective, and consistent.
With the expanding number of jobs in the digital asset industry in The Bahamas, Bahamians must have the expertise to take advantage of them.
To help Bahamians find work, the government wants to expand the amount of sector-specific, professional, academic, and vocational education alternatives accessible.
The government would encourage and facilitate collaboration between relevant agencies, particularly the SCB, and the commercial sector. It will be carried out with the support of the University of the Bahamas (UB) in order to get more experience.
The collaboration’s goal is to create a range of crypto-asset courses, as well as certificate and degree possibilities.
Experts from around the world will also be consulted to work with UB’s management and six professors and scholars to develop the curriculum and deliver the courses.
5.5 percent of internet users around the world now have some form of digital currency. Nigeria, Ghana and South Africa on the other hand, blow this figure out of the water, with between 7.3 percent and 10.7 percent of their users having digital currency assets.
Indeed, crypto has grown in popularity in Africa in recent years, with Zimbabwe, Kenya and Botswana joining the party.
Digital currencies have completely changed the way people transact throughout the world. It has taken the globe (especially the developing world) by storm due to its capacity to effortlessly traverse nations and regions with its simple but effective functionality.
The days of time-consuming and costly transactions are long gone. Before bitcoin, you could make a seemingly straightforward country-to-country transfer and lose a significant amount of money due to the currency exchange.
However, the benefits of crypto aren’t limited to regular day-to-day transactions. Because of the benefits and flexibility of digital currencies, small businesses in Africa are flourishing.
Businesses that had been unable to communicate with the rest of the globe have now been offered a virtual lifeline to do so. Where once there were barriers, there are now simply chances.
A global channel has been created, ready to be tapped into by a slew of firms previously unable to communicate with customers beyond a stone’s throw from their front door.
So it would be a lot more beneficial for countries in Africa to implement the payment of taxes on cryptocurrencies or even encourage payment of certain government services in the form crypto rather than trying to restrict them.
This way, businesses and individuals who use a crypto service for transactions can carry out their transactions fairly while also improving the economy through taxes.
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