In Brief

  • Jamaica has joined other governments in launching its own CBDC.
  • The BOJ expects trials to begin in August, with rollout beginning in December latest.
  • The list of countries now working on CBDC adoption has grown exponentially in 2021.
  • promo

The Bank of Jamaica (BOJ) is set to roll out its central bank digital currency (CBDC) pilot next month.

The Bank is looking to begin piloting the CBDC in August. The pilot will be rolled out across financial institutions. The first step will be commencing the pilot with the National Commercial Bank (NCB). Through which customers will be introduced to the new currency. 

BOJ Governor Richard Byles commented on the CBDC pilot, saying, “We’re currently looking at all the technical sides of the system, and we have a sandbox in the bank that we have the whole infrastructure in. As we work through the technical minting of the currency, we have to test it rigorously as a pilot and that we’ll do in August. In September to December we’ll be recruiting more of the banks to come on board and then we’ll gradually expand the pilot out into a full-fledged launch of the CBDC.”

The BOJ will look to sell the CBDC to licensed commercial banks, deposit-making institutions (DTIs) and payment service providers authorized by the BOJ. The bank will be looking to distribute the CBDC into the financial market infrastructure, or Real Time Gross Settlement System (RTGS). Like most CBDCs, the digital currency will be pegged as $1 in cash to 1 CBDC. 

CBDCs more efficient than cash 

Byles commented on the move to adopt CBDCs as being far more efficient than physical cash, “It’s instantaneous and it is a very efficient way of paying, in a way that cash cannot. It will reduce the cost of producing, transporting and securing cash which run into billions of dollars each year. There will also be no need for merchants to find change, as payment can be to a cent,”

Similar to other countries, the CBDC will look to operate as legal tender within Jamaica once it successfully launches. 

Countries flock to CBDC adoption

Jamaica becomes one of at least a dozen countries that are now working on CBDCs. Currently, China is the most advanced in terms of launching a CBDC. Other countries that have also recently begun taking steps to work on CBDCs include Vietnam, Singapore, Ukraine, and Japan among others. 

Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Coinbase Coinbase Explore
Coinrule Coinrule Explore
3Commas 3Commas Explore
Uphold Uphold Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Ryan-James.jpg
Ryan Boltman
Ryan Boltman is a managing editor at BeInCrypto, specializing in the crypto markets with a strong focus on technical and on-chain analysis across a broad spectrum of digital assets. His areas of expertise include Layer-1 and Layer-2 solutions, artificial intelligence (AI), real-world assets (RWA), decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), meme coins, and altcoins. Before his current role, Ryan contributed to Blockchain.com as a customer success...
READ FULL BIO
Sponsored
Sponsored