The Central Bank of the Bahamas introduces CBDC, according to a press release (December 2019).
The intended outcome of Project Sand Dollar is that all residents in The Bahamas would have use of a central bank digital currency, on a modernized technology platform, with an experience and convenience—legally and otherwise—that resembles cash. It is expected that this will allow for reduced service delivery costs, increased transactional efficiency, and an improved overall level of financial inclusion. The anonymity feature of cash is not being replicated, although the Sand Dollar infrastructure would incorporate strict attention to confidentiality and data protection.
In the FT, Vanessa Houlder reports about the tax evasion business. The new regulatory environment has led to portfolio adjustments and new types of behavior, and it exposes vast differences in enforcement across countries:
- Diamonds in vaults rather than financial assets.
- Trusts in South Dakota rather than anonymous bank accounts.
- Moving to a different country rather than just shifting assets.
- FATCA versus the Common Reporting Standard.
The article also links to an article by Kara Scannell and Vanessa Houlder earlier in the year entitled “US tax havens: The new Switzerland.” That article includes the following quotes:
I think the US is already the world’s largest offshore centre. It has done a real good job disabling competition from Swiss banks.
In a world where it’s very hard to hide ownership or hide assets sometimes the easiest place [is one] no one would normally think of, which is the US.