TL; DR Breakdown
- Jamaican PM predicts 70% adoption rate of CBDC
- Holness shares the benefit of the CBDC
- Bank of Jamaica continues to test on the CBDC
The debate on the Central bank digital currency has been one that has been ongoing for quite some years now. This is because countries worldwide are turning to the digital form of their native currency. Being one of the countries in this group, Jamaica has completed its pilot test at the beginning of the year. Reacting to that, Jamaican PM Andrew Holness holds that the CBDC will enjoy massive adoption in the years to come.
According to the Jamaican PM, he sees a massive adoption rate of up to 70% in the next five years when the CBDC is rolled out. Holness says he is optimistic about people’s behavior towards the digital currency. He also mentioned that the incoming CBDC would provide the country with a more transparent means of carrying out transactions. In this regard, Holness said that the citizens could easily track the government’s financial activities on the blockchain. He also talked about the benefits regarding banking costs and other side payments that would be eliminated. Although the Jamaican PM wants a complete rollout of the CBDC, he is wary of the challenges that it will pose during its early stages.
Bank of Jamaica continues tests on the CBDC
Jamaica has earmarked the first quarter of 2022 as the official launch period for the CBDC on a nationwide scale. However, Holness concedes that the country must draw out a plan to make the CBDC available to the banked and unbanked. He quoted the example of the internet, which is available everywhere. The Bank of Jamaica has joined a small number of countries that have completed their CBDC pilot test worldwide.
Jamaica has already produced about $1.5 million worth of its digital currency. The CBDC will be granted to various financial institutions and registered payment providers. The Bank of Jamaica has also announced that it will partner with two other wallet service providers. This is coming after the success they witnessed during the early stages of the test. The bank also wants to ensure that customers can send and receive payments in the digital currencies across other wallets.