Plans Advanced To Develop Central Bank Digital Currency

• Bank of Jamaica (BOJ) Governor, Richard Byles, says plans are advanced to develop and implement the use of a Central Bank Digital Currency (CBDC) locally. Speaking during the BOJ’s digital quarterly briefing on Friday, Mr. Byles said that over the last couple of months, the Bank undertook the requisite preliminary work relating to assessments and protocols for approval of the proposed digital currency through the government process.
• “So we are, hopefully, going to Cabinet for approval very shortly and will [thereafter] start a pilot in the second or third quarter of this year,” he informed.
• Byles advised that the pilot will “run for a couple of months” and “hopefully, conclude by about the end of this year”. Thereafter, he added, “we will be able to… publicly launch the digital currency in early 2022”.
• CBDC is a form of Central Bank-backed currency and is, therefore, legal tender. It is a fiat currency, which means it can be exchanged, dollar for dollar, with actual cash, and is issued to licensed deposit-taking institutions on a wholesale basis. Individuals, households and businesses can use it to pay for goods and services, as obtains with cash.

(Source: JIS News)