Bank Of Jamaica Is All Set To Start Testing Its Planned CBDC

The Bank of Jamaica (BOJ) is all set to start experimentation of its intended CBDC (central bank digital currency) with the cooperation of various banks of the country. The move, which is being planned since 2020, will be finally initiated in August.

Jamaica Observer reported on Wednesday that Governor of Bank of Jamaica (BOJ) Richard Byles made this news public during an event hosted by Rotary Club.

Sharing some details about next month’s expected launch of CBDC, Byles disclosed that they are playing in the sandbox as the technical phase has been commenced.

It is pertinent to mention here that recently Cointelegraph had reported the selection of eCurrency Mint (an Irish technology firm) by the Bank of Jamaica in March this year. It was selected for the role of technical support provider for its central bank digital currency (CBDC). The cryptography security company was selected from a long list of companies that had been applying since July 2020.

Richard Byles stressed the need for continuous testing and experimentation of soon-to-be-launched pilot currency. He added that in the last quarter of this year, more financial institutions would be recruited in order to enlarge the project to its full capacity.

The Governor of the Bank of Jamaica further told that in this project, the banks would act as intermediaries between the central bank and consumers of both the retail and the corporate sector.

The central bank’s digital currency is being designed as an extension for the already existing currency (banknotes) so that the banks can issue the modern currency to individuals as well as business account holders. The CBDC will be issued at a value of one coin for one Jamaican dollar.

While stating another purpose of this project, Byles stated that CBDC would be used to provide banking services to that portion of the population that does not already hold bank accounts. In relation to this, Richard Byles requested the help of telecommunication companies working in their country to provide their services for CBDC as well.

Central bank digital currency is becoming more and more common because many central banks are conducting studies to launch their own CBDCs while some of them have already stepped in the water. One of those countries is the Bahamas, which initiated its own CBDC in October 2020. Prior to this, The Eastern Caribbean Currency Union introduced its own digital currency (DCash) in eight states of the union.