Jamaica Plans to Pilot a Central Bank Crypto, CBDC to Work Alongside Notes and Coinage
While a number of countries are working on central bank digital currencies (CBCs), the Bank of Jamaica (BoJ) announced on Tuesday that it will soon launch a CBC pilot project. The Bank of Japan has partnered with Ecurrency Mint Incorporated and plans to test the cryptocurrency in May.
Jamaica’s ACC is scheduled to become operational in May of this year.
The Caribbean island of Jamaica plans to conduct a CBDC pilot project in May this year while it undertakes an extensive procurement process. The country’s central bank, the Bank of Japan, has selected a technology provider to help implement the CBDC solution. The startup bank, discovered as Ecurrency Mint Incorporated, is a product of the Bank of Japan’s Fintech Regulatory Sandbox.
The e-coin will also become a seller when the rollout of the national CBDC starts in early 2022, the central bank said in a statement. The CBDC pilot project will undergo extensive testing in May and through the end of December 2021. According to the Central Bank, the CBDC will function alongside Jamaican paper money and coins.
The BoJ explained:
Ecurrency Mint is a global leader and pioneer in cryptographic security hardware, software and protocol technology that enables central banks to securely issue, distribute and control CBDC, a digital fiat currency that will function alongside banknotes and coins as digital legal tender.
Collaborating with BoJ to create a profitable start-up, developing a new distributed ledger technology
With the Bank of Japan’s announcement, the island of Jamaica joins the growing list of countries establishing DTAs. While the socialist state of Venezuela was one of the first CDDCs under the reign of Nicolas Maduro, many other countries have approached the issuance of nation-backed cryptocurrencies. These include countries such as China, Sweden, the EU, the Marshall Islands and the Bahamas.
In addition, a number of other countries are considering setting up CDDCs or at least have started discussions on their development. Countries that have considered the establishment of CBDCs include the United States, Singapore, the United Kingdom, South Korea, Japan and Canada. The Central Bank of Jamaica, with which the startup is working, claims to have developed a revolutionary protocol for digital currency.
E-currency has developed digital symmetric cryptography (DSCC) technology to enable central banks to securely and efficiently issue and distribute digital currencies (CBCs), the company said in a statement on its website.
What do you think about the BoJ launching a CBDC pilot project in May this year? Let us know what you think in the comments below.
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