The Bahamas, a tiny Caribbean island nation, has officially launched the world's first national digital currency, the Sand Dollar, backed by the Central Bank of the Bahamas. The Sand Dollar, which happens to be the logo of Central Bank of the Bahamas, is the first central bank-backed digital currency to be launched and may pave the way for other small central banks in the Caribbean and elsewhere to follow suit. In a Facebook and Twitter post on October 20, the financial authority of the island said that its digital dollar is now available nationwide after being successfully tested on the remote islands of Exuma and Abaco. This is the first successful implementation of a Central Bank Digital Currency (CBDC) with any merchant. Residents of the Bahamas can now trade the sand dollar with a "Central Bank approved e-wallet" on their mobile device for a fee of about $5 USD. The Central Bank of the Bahamas was created in June 1974 to carry out the independent monetary policy and financial sector regulatory functions for the Bahamas after political independence from Great Britain in 1973. The Sand Dollar will be pegged to the Bahamian dollar and it is now available to all 393,000 Bahamian residents. The digital currency trend has also caught on with private banks, as JPMorgan Chase also launched JPM Coin this week to help reduce fees on internal transfers. China is currently testing a pilot program for its digital yuan with a $10 million head start, and Cambodia’s Bakong digital currency is expected to launch in the coming months after a successful pilot in July 2019.