The central bank of Jamaica will launch a pilot program to test its own digital currency in August this year, with the assistance of Irish tech firm eCurrency Mint.
Bank of Jamaica Governor Richard Byles revealed that eCurrency Mint was selected as the technology provider for the digital Jamaican dollar and its high level of security, among other solution providers who applied to participate in the project back in July 2020. of the year. Biles said that before starting testing the state digital currency, the Central Bank carefully studied its technical aspects in the regulatory sandbox.
According to the Governor of the Bank of Jamaica, the digital currency of the Central Bank will operate on a two-tier scheme. Financial institutions will act as intermediaries between the central bank and consumers, whether retail or corporate. Banks will be able to issue digital Jamaican dollars pegged to the state currency in a 1: 1 ratio. They will be kept in customer accounts.
From September to December, the number of commercial banks participating in the project will increase. After successful testing of the state stablecoin, its full launch will take place. Biles believes the digital Jamaican dollar will increase people’s access to financial services. For this, the central bank considers it necessary to connect local telecommunications companies and retail payment systems to the project.
One of the first countries to introduce their own digital currency was the Bahamas – the official launch of the Sand Dollar took place in October 2020. In April, the Central Bank of Saint Kitts and Nevis also launched a government cryptocurrency called DCash.
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