Central bank digital currency is gradually becoming a worldwide thing, Bank Of Jamaica is now the latest country to mint its first batch of central bank digital currency (CBDC).
The Bank of Jamaica (BOJ) coined Jamaica’s first batch of central bank digital currency in a brief ceremony this morning (CBDC).
During the CBDC pilot program, which runs until December, a total of J$230 million in CBDC will be distributed to deposit-taking institutions and authorized payment service providers.
During the ceremony, the BOJ CBDC team displayed the process of minting digital currency, which was a complex but efficient procedure that took place under the watchful eye of Minister of Finance and the Public Service, Dr. The Hon. Nigel Clarke, BOJ Governor Richard Byles, members of BOJ’s senior management team, as well as the management team of technology provider, eCurrency Mint Inc.
Speaking at the ceremony, praising BOJ’s CBDC project’s rapid growth and emphasizing its relevance in the formation of a digital economy. He also pledged that the CBDC-related legislative reform would be in place before the end of the fiscal year.
BOJ Governor Richard Byles thanked Minister Clarke for his support and praised the work of BOJ’s CBDC project team, stating that the next step following this big milestone is to achieve widespread access and acceptance of CBDC by bringing it to the people.
Jonathan Dharmapalan, CEO of eCurrency, praised the initiative and said that, in terms of the amount of work completed in a short period of time, Jamaica has the world’s fastest CBDC project, as well as the world’s fastest man and woman.
The judging process for the recent public contest to submit a name, tagline, logo, and graphic design for Jamaica’s CBDC is now complete, according to Deputy Governor Natalie Haynes, and the winners will be notified and publicized soon.
CBDC is legal tender and can be exchanged for cash dollar for dollar. CBDC will allow households and companies to make payments and store value in the same way that cash does now.
CBDC is backed by the issuing central bank and distributed wholesale to approved financial institutions, including deposit-taking institutions, in the same way as real money is.
Increased financial inclusion, as it would give additional, easier-to-access means of efficient and secure payments, is one of the expected benefits of CBDC for Jamaican residents, businesses, and the government.
CBDC gives an opportunity for deposit-taking institutions and BOJ to improve cash management operations and expenses.
