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The Financial institution of Jamaica invited know-how resolution suppliers to develop and take a look at potential central financial institution digital forex, or CBDC, options.
In response to a press release printed July 17, firms 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 inside the Fintech Regulatory Sandbox not too long ago established by the financial institution It’ll guarantee sufficient client safety and knowledge privateness earlier than the options are launched to the Jamaican economic system, the financial institution stated.
Not a cryptocurrency
The central financial institution said {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 features of cash and they’re additionally usually not backed by a government.
Whereas the financial institution has clarified that it’s not trying to develop a cryptocurrency, there are not any specs about whether or not it intends to make use of blockchain know-how.
Potential use circumstances
As soon as launched, each people and companies will have the ability to use the CBDC as a method of fee and a retailer of worth simply as they presently do with money.
Nonetheless, the financial institution famous, the CBDC could act as a extra environment friendly and safe different for funds which is able to enhance 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 which will present residents the power to ship or obtain funds.
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