Key Takeaways:
- Bahamas to allow Bitcoin as means of tax payment.
- The country is building a strong policy framework to safeguard it from any risk involved and to help face challenges.
The government of the Bahamas has issued a ‘white paper’ named, “The Future of Digital Assets in the Bahamas”, that talks about the country’s digital asset strategy until 2026. It also includes information that the country is to allow its residents to use digital assets to pay taxes.
On April 20, a paper was issued from the office of Prime Minister Philip Davis that stated that their government has plans to start the process in a coalition with the central bank of the Bahamas and the private sector. Davis also has the vision to make the Bahamas the “leading digital asset hub in the Caribbean.”
It is stated in the paper, “Enabling access to digital assets for Bahamians in B$ and encouraging greater use of Sand Dollars (the Central Bank Digital Currency issued by the Central Bank of The Bahamas) is a priority for the Government. We will work with the SCB, the Central Bank of The Bahamas, and the private sector on ways to enable Bahamians to access digital assets with B$, and for Bahamians to pay taxes using Sand Dollars. We will also seek to promote wider use of Sand Dollars in commerce on the islands.”
However, while working towards its goals, the government will also keep in mind the risks involved. To help with this, a Digital Advisory Panel (DAP) will be established that will include digital asset experts as well. The committee will constantly monitor the developments and the trends that keep emerging in the digital sphere.
To ensure that this initiative does not face any hindrance, the government has laid down a few policies. The objectives of the government include promoting the economic growth of the country, maintaining the image of the Bahamas while ensuring it adheres to its policies, and keeping its initiatives relevant.
During the course of this year, the Bahamas has plans to establish the Digital Asset Policy Committee (DAP), DPC, and Securities Commission of The Bahamas (SCB), along with other goals. The government is looking forward to the new digital asset policy framework as an opportunity to face some of the economic challenges and for the development of the country.
