BOJ Closer To Rollout Of Digital Currency

• The Bank of Jamaica (BOJ) is slated to commence national rollout of the Central Bank Digital Currency (CBDC) platform during the first quarter of 2022. CBDC is a digital form of central bank-issued currency and, therefore, is legal tender that can be exchanged dollar for dollar with physical cash. 
• Deputy Governor with responsibility for Banking, Currency Operations, and Financial Markets, Natalie Haynes, says it is anticipated that by then, additional deposit-taking institutions (DTIs) will be on boarded to enable the issuing of wallets to facilitate an expansion of the number of individuals and businesses utilizing the currency. 
• National Commercial Bank (NCB) is currently the sole DTI participating in the CBDC pilot, which commenced in June and is slated to conclude in December. NCB has developed its wallet and has begun testing the facility with staff and their family members, and there are plans to roll this out, before year end to individuals and small merchants. 
• The next phase will involve testing cash-ins and cash-outs at the automated banking machines (ABMs). The BOJ has also developed a wallet for its staff, and its interoperability with NCB’s will be tested, come December. Interoperability between all wallet providers is an important component of any CDC. 
• 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 CBDC represents an opportunity for DTIs to improve cash management processes and costs.

(Source: BOJ)