The Bank of Jamaica is testing a real-time central bank digital currency (CBDC).
On August 9, the Central Bank of Jamaica released the first units of its CBDC.
This morning, in a short ceremony, the Bank of Jamaica minted the first batch of Jamaica's central bank digital currency
The issue was 230 million Jamaican dollars ($1.5 million). The pilot project will last until the end of December. Several local banks and payment companies will participate.
The bank confirmed that its digital currency will operate on the existing centralized architecture of the eCurrency payment system, rather than via blockchain. Issuance and distribution will be “fully integrated” with the central bank’s real-time gross settlement system JamClear.
Jamaica has opted for a “hybrid” CBDC model. The central bank issues currency to financial firms, which then make it available to customers in retail form. Not only banks, but also wider depository institutions and PSPs will be able to offer customers retail accounts to use CBDC. Bank of Jamaica says the process of opening these accounts will be “much simpler” than opening a standard bank account, with simplified KYC requirements.
The final launch and implementation of the digital currency is expected to take place in the first quarter of 2022.
Subscribe to ForkNews on Telegram to always stay up to date with the latest news from the world of cryptocurrencies
You May Also Like
Cryptocurrencies and Central Banks: who wins?
From the Marshall Islands to Russia, everyone is involved in the discussion of this year's top topic - cryptocurrency. After digital currencies took investors on a rollercoaster ride, central banks began to seriously consider issuing national cryptocurrencies. These currencies will not become second-rate players. In contrast, central bank support can have a significant impact on individual clients, commercial creditors and the international monetary system.
Chairman of the Swiss Stock Exchange sees opportunities for issuing a digital Swiss franc
SIX Swiss Stock Exchange Chairman Romeo Lacher believes there is potential for a digital version of the Swiss franc. On February 25, Mr. Lacher told the Financial Times that the exchange would support such an initiative, adding that he does not like cash.
