07-26-2020 icon

Bank of Jamaica to Begin Digital Currency Testing

By Sagetwriter
Jamaica Central Bank Digital Currency

The Bank of Jamaica – Jamaica’s central bank has published an invitation to emerging tech companies to partner in the development and test of its national CBDC.

According to an official statement, interested technology companies are requested to submit details of their digital currency solutions to the bank on or before August 7, 2020; with the central bank adding that it will test the solutions under its Fintech Regulatory Sandbox in a bid to offer proper consumer protection and data privacy before the CBDC is introduced to the public.

The Jamaican bank however notes that the central bank-issued digital currency (CBDC) is not exactly a cryptocurrency rather it is a digital version of its fiat/cash currency.

Use Cases of Jamaica’s CBDC

Once launched, the Jamaican CBDC will be utilized by both individuals and businesses for payments just like cash, and will also be used as a store of value.

The bank further highlights the benefits of a central bank digital currency to include: offering an efficient and secure alternative for payments, ensuring financial inclusion for a large number of residents in Jamaica, and improving the cost effective management of cash.

If a viable solution is adopted and introduced, the anticipated benefits of CBDC for Jamaican citizens, businesses and the Government include increased financial inclusion, as it will provide another means of efficient and secured payments. For deposit-taking institutions, CBDC presents an opportunity to improve cash management processes and costs.

– Bank of Jamaica Addresses Benefits of a Central Bank Digital Currency