Central Bank of Jamaica says it has ‘successfully completed CBDC pilot’

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2022-01-06 04:38:28

The Central Bank of Jamaica has successfully completed a trial of its CBDC, according to a statement from the bank. However, the statement revealed that only one payment service provider participated in the test.

Only one payment provider participated in the pilot

The Central Bank of Jamaica (BOJ) recently revealed that it has successfully completed testing a central bank digital currency (CBDC). The BOJ’s statement came after completing an eight-month test run that began in May 2021.

However, in a statement released on the last day of 2021, the BOJ revealed that only one institution participated in the pilot. The statement explains:

“The scope of the CBDC pilot is limited to wallet providers willing to participate within the scheduled time frame. National Commercial Bank. [NCB] Based on their level of experience in the Sandbox, partnered with the BOJ to examine the range of services offered using a CBDC solution.”

The statement also explains that the success of the pilot project “depends on whether a CBDC with an assistive technology solution can be successfully implemented in Jamaica.”

230 Million USD CBDC Mined

The statement revealed that three operations were completed during the testing phase. The first activity was minting $230 million in CBDCs “issued to depository institutions and authorized payment service providers.” The day after minting the digital currency on August 9, 2021, the BOJ went on to issue $1 million worth of CBDCs for distribution to the bank’s employees.

Next, on October 29, 2021, about $5 million worth of CBDCs were issued to NCB and this was the first CBDC issuance to a depository institution in Jamaica. After receiving the digital currency, NCB then “successfully reached 57 customers, including 4 small merchants and 53 consumers”.

In turn, 57 customers have gone on to conduct in-person transactions, receive cash and transfer cash through “37 accounts and complete transactions with small merchants (local artisan jewelers, retailers, etc.) designer footwear and fashion and apparel stores) through an NCB-sponsored event called ‘Market on the Lawn’ previously held in December 2021″.

In the meantime, the statement suggests that the nationwide rollout of CBDCs is expected to begin in the first quarter of 2022. During this period, NCB – the only authorized payment service provider Most have entered the pilot phase – “will continue to refer existing and new customers. At the same time, two other wallet providers “will be able to order CBDCs from the BOJ and distribute to their customers.”

Tests to determine transaction interoperability between customers of different participating wallet providers will also be carried out during this period, the statement added.

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