The Bank of Jamaica (BOJ) has a new milestone in theirs Central bank digital currency (CBDC) tracking the first batch of his Digital Jamaican Dollar.
The project, which is being developed by the BOJ’s CBDC team, has entered a pilot phase in which a total of J $ 230 million will be minted in CBDC before December 2021 and deposited with depository institutions and authorized payment service providers.
The advent of the Jamaican digital dollar has been touted by various government officials including Treasury Secretary and Public Service Dr. The Hon. Nigel Clarke, as instrumental in developing the country’s digital economy. The CBDC is also designed to promote financial inclusion for all citizens.
“The expected benefits of the CBDC for Jamaican citizens, businesses and the government include greater financial inclusion as it provides another, more accessible, means of making efficient and secure payments. For depository institutions and the BOJ itself, CBDC offers the opportunity to improve cash management processes and costs, ”the Bank of Jamaica said in its published press release.
According to BOJ Governor Richard Byles, the next stage in the country’s CBDC project is to push for general acceptance by Jamaican citizens. The appropriate legal framework to support the emergence of the Jamaican dollar is in place as promised by the Treasury Secretary.
The pursuit of CBDC seems to be taking a big leap in the Caribbean island nations. The central bank of the Bahamas was the first in the world to launch its CBDC, the Sand Dollar, in October 2020. Other nations in regions such as Europe and Asia are also making strides in finding these new forms of money with unique regulations and use cases being worked out by the relevant monetary authorities in each country.
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