BOJ Advances Work To Commence Pilot Implementation of CBDC in August

• Bank of Jamaica (BOJ) Governor, Richard Byles, says work is being finalized to commence pilot implementation of the proposed central bank digital currency (CBDC) locally, in August. Mr. Byles indicated that technical support for the CBDC’s rollout, among other inputs, are being reviewed to facilitate onboarding of the first financial institution – National Commercial Bank (NCB) – to test the system. 
• The Governor said between September and December, the BOJ will look to onboard more banks, and will gradually expand the pilot into a full rollout in 2022. 
• CBDC is a form of central bank-backed currency and is, therefore, legal tender. It can be exchanged, dollar for dollar, with actual cash and is issued to licensed deposit-taking institutions (DTIs). Individuals, households, and businesses can use it to pay for goods and services, as obtains with cash. 
• According to the Bank, the benefits to be derived by citizens, businesses and the Government from the adoption and introduction of a viable digital currency solution include increased financial inclusion and another means of efficient and secured payments. Additionally, the BOJ says CBDC represents an opportunity for DTIs to improve cash management processes and costs.

(Source: Bank of Jamaica)