A closer look
Commercial banks are facing an existential crisis brought on by the very institutions that mint the money. With Central Bank Digital Currencies like the Bahamian Sand Dollar, citizens can hold digital fiat directly with the central bank, bypassing retail banks entirely. If citizens pull their deposits out of commercial checking accounts to hold state-backed crypto, regular banks lose the capital they need to issue mortgages and business loans, threatening to completely upend the traditional lending economy.
