Post successful pilot test, Jamaica may begin nationwide CBDC rollout this quarter
The global race between governments to launch a central bank digital currency (CBDC) has heated up exponentially over the past month, especially now that some of these currencies have already been rolled out by countries like Nigeria and the Bahamas.
Jamaica may soon join this list as the Caribbean nation is all set to release its CBDC in the current quarter. This follows a successful run of its pilot launch that ended in December.
Speaking to Reuters recently, Bank of Jamaica’s deputy governor Natalie Haynes noted that the currency would be a path towards financial inclusion for the country’s significant un-banked population. She said,
“The majority of Jamaicans are financially excluded. To get those persons into the formal financial system, we decided that the central bank digital currency would be a good opportunity.”
Starting in May last year, the BOJ had begun the pilot roll-out of its CBDC after minting 230 million Jamaican dollars (or $1.5 million) in digital currency. This was issued to deposit-taking institutions and authorized payment service providers in early August, followed by 1 million JMD ($6,500) in CBDC issued to staffers.
One of the island nation’s largest financial institutions, the National Commercial Bank (NCB), was also made a part of the launch after it was issued CBDC worth 5 million JMD ($32,000). NCB then test the currency 57 people and small merchants who successfully completed person-to-person transactions using digital wallets.
The BOJ has expressed plans to convert 5% of the fiat JMD into its CBDC form every year. However, the currency would only be available for domestic use and would not be interchangeable with other digital currencies, both private and state-issued.
Nevertheless, the country’s
Read more on ambcrypto.com
