Wednesday, October 9, 2019

Central Bank proposing to establish digital currency as ‘legal tender’

Regulator releases second round of consultation on draft bills

By Natario McKenzie

NASSAU, BAHAMAS – The Central Bank of The Bahamas is moving to amend its governing laws to establish digital currency or electronic money as legal tender in The Bahamas.

The proposal was outlined in the regulator’s second round of consultation on the draft Central Bank of The Bahamas Bill 2019, the draft Bank and Trust Companies Regulation Bill, 2019, the Protection of Depositors Act 1999 and the Protection of Depositors Byelaws, 1999.

“Clauses 8 and 12 of the Bill seek to establish that the currency of The Bahamas may include electronic money issued by the Central Bank and that electronic money (digital currency) issued by the Central Bank is legal tender in The Bahamas,” the consultation document read.

“Clause 14 will make it an offence for a person to counterfeit digital currency or to reproduce digital currency without the Central Bank’s permission. A new clause 14A will authorize the Central Bank to make regulations for the purpose of prescribing the framework for the issue of digital currency.”  Read more >>