The Financial institution of Jamaica invited know-how answer suppliers to develop and check potential central financial institution digital forex,
The Financial institution of Jamaica invited know-how answer suppliers to develop and check potential central financial institution digital forex, or CBDC, options.
In response to a press release revealed July 17, corporations have been requested to submit the main points of their options to the financial institution by Aug. 7, 2020.
The developed options might be examined throughout the Fintech Regulatory Sandbox just lately established by the financial institution It can guarantee ample shopper safety and information privateness earlier than the options are launched to the Jamaican financial system, the financial institution stated.
Not a cryptocurrency
The central financial institution acknowledged {that a} bank-issued digital forex could be a fiat forex and it shouldn’t be confused with cryptocurrencies.
The financial institution drew a line between CBDCs and different cryptocurrencies, saying that cryptos don’t carry out all of the important capabilities of cash and they’re additionally usually not backed by a government.
Whereas the financial institution has clarified that it’s not seeking to develop a cryptocurrency, there aren’t any specs about whether or not it intends to make use of blockchain know-how.
Potential use instances
As soon as launched, each people and companies will have the ability to use the CBDC as a way of fee and a retailer of worth simply as they at the moment do with money.
Nevertheless, the financial institution famous, the CBDC could act as a extra environment friendly and safe different for funds which can improve monetary inclusion inside Jamaica. Deposit-taking establishments are additionally anticipated to expertise an improved money administration course of that’s cheaper.
The Financial institution of Jamaica stated that exploring the potential of a CBDC is their newest step towards constructing a extra environment friendly digital retail fee infrastructure that will present residents the power to ship or obtain funds.