Central Bank of Jamaica issues CBDC

The Bank of Jamaica is conducting real-time trials of a central bank digital currency (CBDC).

9In August, the central bank of Jamaica issued the first units of its CBDC. 

In a short ceremony this morning, the Bank of Jamaica minted the first batch of Jamaica's central bank digital currency

The issue amounted to 230 million Jamaican dollars ($ 1.5 million). The pilot project will run until the end of December. Several local banks and payment companies will take part in it.

The bank has confirmed that its digital currency will run on the existing centralized architecture of the eCurrency payment system, rather than through the blockchain.Issuance and distribution will be "fully integrated" with the central bank's real-time gross settlement system, JamClear. 

Jamaica has opted for a "hybrid" CBDC model, with the central bank issuing currency to financial firms, which then provideNot only banks, but also wider depository institutions and PSPs will be able toThe Bank of Jamaica states that the process of opening such accounts will be"much easier" than opening a standard bank account, with simplified KYC requirements. 

The final launch and implementation of the digital currency is expected to take place in the first quarter of 2022. 

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