Central Bank of The Bahamas to Introduce Cryptocurrency

The Bahamian government has decided to set up a national cryptocurrency to aid the unbanked and ease the process of doing business in the multiple islands that make up the nation. #bahamas

“The production of a modern fully digital payment service is the way forward for this era of governance. A digital Bahamian currency is especially important for the many family islands as they have seen many commercial banks downsize and pull out of their communities, leaving them without banking services. As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely,” said deputy prime minister K Peter Turnquest.

Currently, businesses from around the world are based in The Bahamas, mostly for its policy of ensuring shareholder privacy and relaxing any tax requirements on foreign-earned income. A business wanting to take advantage of the tax incentives could establish itself as an international business company (IBC) on the island, which exempts it from all taxes for the next 20 years. After that period, the company is liable for taxes only on income it makes on any of the islands, as well as stamp and estate taxes.

By introducing a cryptocurrency, companies established in The Bahamas, such as the Big Four accounting firms, could potentially do business more easily and in a far more private manner than they currently do. Many of their clients also face the inability to privately transact using the banking system, making it difficult to steer clear of some of the taxes imposed by foreign nations.

The Bahamian government isn’t stopping there, though. Turnquest wishes to extend this further and offer a blockchain infrastructure for the issuance of certificates to people who complete their studies at the National Training Agency.