The Jamaican central bank also revealed that the pilot of their CBDC project is expected to begin by May 2021
The Bank of Jamaica announced in a press release that the Irish tech outfit eCurrency Mint, a cryptography security company specialising in central bank digital currency issuance, has been roped in as the technology provider for the country’s sovereign digital currency project. Jamaica is the latest in the list of countries that have recently made concrete efforts towards issuing its central bank digital currency.
Jamaica’s central bank invited technology solution providers to submit their applications and proposals for the CBDC project last July. The Bank of Jamaica had at that time insisted that any sovereign digital currency from its end will not emulate crypto technology.
Central Bank Digital Currency is the digital representation of the fiat money issued by a country’s central bank to enable cashless transactions, speed up payments, and reduce associated costs.
eCurrency Mint, an Ireland-based tech provider, is also working with other central banks and international finance organisations to develop standardised global protocols for the design and implementation of sovereign digital currencies — a task that has become more crucial than ever, considering the growing interest of countries in launching their own digital currencies.
Through the announcement, the Jamaican central bank also revealed that the pilot of the CBDC project is expected to begin by May 2021 under the sponsorship of the Fintech Regulatory Sandbox of the BoJ. eCurrency Mint will play a significant role in supporting the central bank in testing protocols during the pilot stages, which are expected to be completed by the end of this year.
The tech outfit will continue to contribute to Jamaica’s CBDC project as its full-fledged tech provider after the national roll-out, expected to commence by early 2022. Previous statements by the central bank also suggest that Jamaica’s CBDC will be used as a mode of payment, similar to cash, by both individuals and businesses.
Jamaica, not unlike many of its Caribbean counterparts, has considerably liberal crypto and blockchain regulations. It also allows regulated entities like the nation’s Stock Exchange to participate in cryptocurrency trading.
China’s digital yuan is anticipated to be the first digital version of a currency issued by a major central bank. Along with advantages in security and tracking of transactions, CBDCs will also represent a revolution in the way currencies will function, bringing an ever-growing number of people onto a digital banking platform