Despite Nay-Sayers, “Digital Assets Industry is Here to Stay”: The Bahamas Prime Minister

Bahamian Prime Minister Philip Davis says that the island nation will continue to maintain its pioneering role in the digital asset space and stressed on the importance of innovation to adapt emerging trends in fintech and decentralized finance (DeFi) advancements.

The pro-crypto leader emphasized that the digital asset industry “is here to stay,” despite criticizers who have raised concerns over the industry’s viability.

“The Bahamas will continue to be a pioneer in the digital asset space,” he said during his opening speech at the D3 Bahamas conference on Wednesday. “Despite the nay-sayers, the digital assets industry is here to stay.”

Davis said that the Bahamas would develop “an effective and stable regulatory framework” which is important for the cryptocurrency industry.

Amendments to Digital Assets Act

The Bahamas is looking to amend its Digital Assets and Registered Exchanges (DARE) Act in a move to consistently “evolve its regime to meet the latest threats and risks as they emerge.” The amendments will also place the nation among the best-regulated jurisdictions in the world, Davis added.

The country is planning to bring in measures to clarify the regulation of stablecoins, introducing robust investor protection and framework for digital assets staking.

“We expect the amendments to be tabled in Parliament shortly and passed through both chambers by the end of the year.”

Davis also foresees that “web3 and fintech will transform global financial systems in unprecedented ways.”

Furthermore, as there is a growing population of unbanked people, particularly in the Caribbean and Latin America, Prime Minister Davis underscored that the nation’s crypto adoption is not only about attracting investors, but also addressing domestic challenges.

“We see fintech and DeFi as opportunities to promote greater financial inclusion throughout our archipelago and across the region.”

The government is also mulling on crypto education, said Davis. The University of The Bahamas has entered into a licensing agreement with the Cambridge Centre for Alternative Finance to provide fintech academic program.

The Bahamas launched the world’s first blockchain-based central bank digital currency (CBDC) – the Sand Dollar – in October 2020.

The island nation has also been home to the beleaguered FTX exchange, which filed for Chapter 11 bankruptcy in November 2022.

In April, Davis said that the country is “open for business” for legitimate digital-assets companies and that the Bahamas hasn’t lost its “zeal for being at the forefront of the digital-assets industry,” despite FTX’s failure and alleged fraud.