BOJ mints $230 million in first batch of CBDC
The Bank of Jamaica (BOJ) at the start of this week minted $230 million worth of its central bank digital currency (CBDC) to be issued to deposit-taking institutions and authorised payment service providers at the start of a pilot exercise expected to end in December.
The pilot, which is to be first rolled out at the National Commercial Bank (NCB), will, in the next couple of months, onboard other institutions across the financial landscape.
BOJ Governor Richard Byles, in acknowledging the hard work of the central bank’s CBDC project team, dubbed the project a milestone achievement which he said will in the next phases seek to ensure widespread access and acceptance of the CBDC, which is expected to become popular legal tender in the next few years.
Minister of Finance Dr Nigel Clarke, in lauding the successful roll-out of the CBDC, said that the currency was critical to the creation of a digital economy. Speaking at the launch ceremony, he promised that the legislative amendment to accompany the CBDC will be in place before the end of this fiscal year.
“CBDC offers a more secure, more efficient form of currency that offers the potential of significantly broadening financial inclusion. Along with national identification the CBDC will form the foundation of the digital transformation of our society,” Clarke also stated on his social media account on Monday.
He explained that the CBDC, which is a digital form of the Jamaican currency, can be exchanged for physical currency at a one-for-one basis with the institutions participating in the central bank pilot.
Jonathan Dharmapalan, chief executive officer (CEO) of technology provider eCurrency Mint Inc, credited the project and commended the BOJ and Jamaica for the fast moving pace at which it was able to roll out the CBDC.
eCurrency Mint, a global hardware, software, and cryptographic security protocol technology, enables central banks to securely issue, distribute and supervise CBDC. The technology is also expected to be the service provider when the national roll-out begins in early 2022.
