The Bank of Jamaica has shown sincere commitment to develop and test a CBDC for the country by calling on technology companies to come and render some services.
The Bank of Jamaica is expecting the applications of technology solution companies who can help the country to create a workable CBDC.
The central bank said on July 17 that applications will end on August 7, 2020.
According to the central bank, the solution providers should be aware that there is a Fintech Regulatory Sandbox for the bank which will be used to test the CBDC they create. The essence is to make sure there is data privacy and consumers are protected. After the test, the CBDC will then be used on a wider scale in all aspects of the country’s economy.
CBDC not crypto
The central bank educated the public that its upcoming CBDC is not a cryptocurrency but a fiat currency.
The bank highlighted some differences between CBDCs and crypto. One of the differences, it said, is that cryptos do not come from the central bank. It also mentioned that CBDCs can do more than cryptos as money.
The central bank of Jamaica has, therefore, made it clear that there won’t be any cryptocurrency from it but what is yet to be ascertained is if it is going to use blockchain technology.
What the CBDC will be used for
The CBDC will be like cash for buying properties and amassing wealth.
Another reason why Jamaica wants to get one as soon as possible is to help improve financial inclusion. Banks and other financial institutions that accept deposits will find it easier to handle the CBDC.
The Bank of Jamaica stated that the country’s quest for a CBDC is a step towards digitalizing the banking sector to make transfer of money easier among citizens.