The Bank of Jamaica has reported the successful completion of testing its own digital currency. Plans include the introduction of the CBDC at the national level in Q1 2022. 

Jamaica Plans to Launch CBDC in Q1 2022

The Bank of Jamaica (BOJ) website has published a report on the successful completion of the CBDC testing. The pilot launch lasted eight months, with eCurrency Mint Inc. as a technology partner. The CBDC supply took place in several stages: 

  1. CBDC issuance of 230 million JMD (~$1,5 million). The funds went to deposit-taking institutions and authorized payment service providers. 
  2. CBDC issuance of 1 million JMD (~$6500). The funds were credited to the BOJ staff. 
  3. CBDC issuance of 5 million JMD (~$32,000). The funds were deposited into the National Commercial Bank (NCB) account, one of Jamaica’s largest financial institutions. 

NCB also provided users with wallets for CBDCs. A total of 53 consumers and four merchants participated in the CBDC test. In December 2021, they were able to make fund transfers, service payments, account transactions, and cash withdrawals at an NCB-sponsored event, “Market on the Lawn.” 

The pilot was deemed a success by the BOJ. The national roll-out of the CBDC is scheduled for Q1 2022. The BOJ has the following goals: 

  1. Attracting new customers to NCB and working with existing ones. 
  2. Market introduction of wallets for CBDC from two other service providers. 
  3. Testing transactions between clients of various service providers. 

Recall that CBDCs have already been launched in the Caribbean by the Eastern Caribbean Central Bank (DCash) and the Bahamas Central Bank (Sand Dollar).

Author: Alex Golovakha
#CBDC #Regulation