Digital currency-linked card now available through collaboration between Mastercard and Island's central bank.
Mastercard Enables Use of The Bahamas' Digital Currency, Sand Dollar
The Central Bank of The Bahamas, in partnership with Mastercard, has launched the Sand Dollar, the nation's own digital currency, for use in shopping and payments. This innovative move aims to promote government disbursements, provide additional payment options, and create a more inclusive economy [1].
Mastercard plays a key role in the implementation and acceptance of The Bahamas' Sand Dollar CBDC. The company enables payment transactions through prepaid Mastercard cards linked to Sand Dollar digital wallets [1]. Bahamian users can pay with the Sand Dollar using these prepaid Mastercard cards, which provide access to their CBDC balances stored in digital wallets with specified holding and transaction limits.
The Sand Dollar digital wallets can be accessed through a physical prepaid Mastercard payment card or a mobile application. Consumers have options of Tier I (basic wallet with a $500 holding limit) and Tier II (premium wallet with an $8,000 holding limit), both allowing transactions via these Mastercard prepaid cards [1].
Transactions are immediate between payer and payee eWallets, with the prepaid Mastercard serving as a payment instrument for Sand Dollar funds, which are central bank money backed and maintained on a distributed ledger platform [1]. No official ID is required to open a basic wallet linked to such a prepaid card, facilitating financial inclusion while still supporting compliance in higher-tier wallets.
This collaboration integrates Mastercard’s established card payment network with the innovative CBDC ecosystem designed by the Central Bank of The Bahamas. Mastercard's role, however, appears to be limited to enabling prepaid payment cards tied to Sand Dollar wallets. The technology platform itself was developed by NZIA Limited in partnership with the Central Bank of The Bahamas [1].
Meanwhile, other developments in the digital currency space are also gaining traction. Tesla purchased $1.5b in Bitcoin and plans to start accepting Bitcoin as a form of payment. Some corporations are beginning to implement Bitcoin as a form of payment, and Bitcoin, along with Dodge Coin, Ethereum, and other cryptocurrencies, have seen growth in the stock market recently [1]. Mastercard, too, plans to support select digital currencies directly on its network.
[1] Source: PaymentsJournal and various news articles.
The partnership between Mastercard and The Bahamas' Central Bank allows for technology-driven payments using the Sand Dollar, the nation's digital currency. Mastercard facilitates these transactions through prepaid Mastercard cards linked to Sand Dollar digital wallets, thereby bridging finance and technology.
