The Bank of Jamaica is inviting Tech Companies to Participate in the Testing of Digital Currency Solutions
The Central Bank of Jamaica (CBJ) has extended an invitation to providers of technology solutions to create and test prospective solutions for central bank digital currency (CBDC).
According to a statement released on the 17th of July, interested companies have been asked to provide the bank with the specifics of their ideas by the 7th of August in 2020.
The bank only recently launched a “Fintech Regulatory Sandbox,” in which the developed solutions will be put through their paces. According to the bank, this will guarantee proper security for consumers and their data privacy before the keys are implemented into the Jamaican economy.
That’s not a cryptocurrency at all.
It was claimed by the central bank that bank-issued digital money would be a form of fiat currency and that this type of currency should not be confused with cryptocurrencies.
The bank differentiated CBDCs from other cryptocurrencies by stating that cryptos do not fulfill all of the critical functions of money and are often not supported by a central authority. CBDCs, on the other hand, did accomplish all of these functions.
The bank has made it clear that it does not want to create its cryptocurrency, but there has been no indication of whether it plans to use the technology that underpins blockchains.
Potential use cases
When it is finally released, the CBDC will have the same capabilities as cash in terms of both a means of payment and a store of value, which will be valid for both individuals and corporations.
However, the bank pointed out that the CBDC might serve as a payment alternative that is both more effective and secure, which will lead to an increase in the number of Jamaicans who have access to the financial system. In addition, it is anticipated that institutions that accept deposits would see an improved cash management procedure that is more efficient financially.
According to the Bank of Jamaica, the most recent step they have taken toward constructing a more effective digital retail payment infrastructure is to investigate the possibility of establishing a CBDC. This infrastructure might give Jamaicans the option to send or receive payments.