The Central Bank of The Bahamas is the reserve bank of The Bahamas based in the capital Nassau.
The bank was established on 1 June 1974 but traces its origins to the currency board established in 1919. The bank carries out the independent monetary policy and supervision of the financial sector of The Bahamas.
A central bank digital currency (CBDC) is a digital version of a country's official currency, created by the nation's central bank rather than by private companies. Unlike cryptocurrencies such as Bitcoin, CBDCs are issued by a state and may work alongside physical cash. As of 2024, the Bahamas, Jamaica, and Nigeria have launched CBDCs, and 134 countries are researching their own versions while other jurisdictions, such as Florida, have banned CBDCs citing privacy concerns.
CBDCs could enable faster, cheaper payments and improve financial inclusion, but raise concerns about privacy and the potential for them to be used as a "tool for coercion and control". CBDC implementation could affect banks' financial stability, requiring careful policy design.