During the National Budget Debate address, Clarke revealed that the Central Bank’s digital currency will be tested in December, ahead of its launch.
The government of Jamaica disclosed that in light of Covid-19, a swift transition to a digital society will be crucial for the economy to recover. Enter central bank digital currencies.
Clarke added that a CBDC will greatly improve financial inclusion and provide financial services to the nation’s unbanked population. He specified that although a virtual currency backed by the central bank of Jamaica (BoJ) will be released, it will differ from cryptocurrencies and the CBDC should not be considered as one. Clarke said:
“It is not to be confused with cryptocurrency, which is privately issued and not backed by a regulatory authority.”
The CBDC issued by the central bank of Jamaica will be made interchangeable with the Jamaican dollar on a one-to-one basis, therefore adopting more stablecoin-like characteristics than crypto.