By Shelly Melancon (Switzerland)
Jamaica is vigorously advancing with its Central Bank Digital Currency (CBDC), and progress can be seen as the Bank of Jamaica (BOJ), mints the country’s first batch of National Digital Currency. The BOJ declared officially that its honorable CBDC team confirmed the process of minting digital currency at a financial ceremony on Monday. The distribution process for a digital version of the Jamaican dollar (JMD) was executed with participation from Jamaica’s finance minister Nigel Clarke, BOJ governor Richard Byles and other senior BOJ executives, including a management team from Irish technology firm eCurrency Mint.
Rapid Progress in The Development of Jamaica’s Digital Currency
Following the announcement, the BOJ plans to issue a total of 230 million JMD ($1.47 million) in CBDC to deposit-taking institutions and authorized payment service providers. Minister Clarke remarked that the Jamaican government has seen quick headway in the growth of the country’s digital currency project, accentuating its significant part in the achievement of a digital economy in the island country.
He also noted that local lawmakers are working on a legislative amendment to furnish a legal basis for the Jamaican CBDC before the end of 2021. Following the BOJ governor Byles statement, Jamaica’s next CBDC adoption step would ensure broad access and reception by bringing the CBDC to users. The announcement points out that the Jamaican CBDC strives to promote a number of benefits to users, which includes “easier-to-access means of efficient and secured payments.”
“For deposit-taking institutions and the BOJ itself, CBDC presents an opportunity to improve cash management processes and costs,” the central bank added.
Latest Development
The current development works with the BOJ’s CBDC plans as governor Byles disclosed that the initial roll-out of the Jamaican CBDC was slated for August. Regulated and allocated by the BOJ, the country’s CBDC is developed to complement Jamaica’s banknotes and allow financial institutions to issue the currency to individual and industry account holders with each digital token pegged to the JMD on a 1:1 ratio.
This announcement arrives amid a rising number of countries aggressively piloting national CBDC initiatives, Venezuela plans to launch a CBDC in October and according to a Friday analysis by JPMorgan strategist Josh Younger, retail CBDCs could risk “disintermediating commercial banks” leading to a 20% or 30% loss of their budget base.
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