Bahamians may soon be allowed to pay taxes with digital assets

Bahamians (citizens of the Bahamas) may soon be able to pay taxes with digital assets such as central bank digital currency, or CBDC said Philip Davis, prime minister of the Bahamas.
Bahamians may soon be allowed to pay taxes with digital assets
Bahamians may soon be allowed to pay taxes with digital assets

The Bahamas’ Office of the Prime Minister stated in a white paper on the future of digital assets released on Wednesday that the government will begin to “allow payment of taxes using digital assets” by collaborating with the country’s central bank and the private sector.

In addition, the government intends to work on providing citizens with access to crypto using the Bahamian dollar and promote the usage of the Sand Dollar, the country’s CBDC.

The white paper stated, “The Government will strive to guarantee that digital assets are not exploited to evade taxes or sanctions, and will attempt to ensure compliance with all applicable tax information exchange agreements (TIEA), domestic legislation, and accepted OECD standards.”

The Bahamas announced the formation of a digital asset policy committee and a digital advisory panel, or DAP, in an effort to promote consistency across government branches.

The former will be chaired by the prime minister — at the time of publishing, Philip Davis — with members including the Financial Secretary, the governor of the Central Bank of The Bahamas, the executive director of the country’s Securities Commission, and the DAP chair.

“To keep digital assets and related digital innovations, emerging trends, and associated dangers constantly under evaluation,” the advisory council will include specialists from the digital asset field.

According to Eyewitness News Bahamas;

“We have a strategy to develop The Bahamas into the premier digital assets hub in the Caribbean and a global leader in the progressive regulation of enterprises in this profoundly inventive field.”

“While we appreciate the incredible opportunities provided by digital assets, we also know the hazards, which is why we stress the significance of proper regulation.”

The Bahamas became the first jurisdiction to completely implement a CBDC in October 2020. The Sand Dollar, a digital currency, was created to promote greater financial inclusion in the archipelago nation of over 700 islands, around 30 of which are inhabited. In September 2021, the country’s largest cryptocurrency exchange, FTX, registered a Bahamian subsidiary.