Jamaica Collaborates With Irish-based Firm For New CBDC Plans

Jamaica Collaborates With Irish-based Firm For New CBDC Plans

No country wants to be left behind, as many nations announce creating their Central Bank Digital Currency. Amongst some of the most prominent countries would be China, as the Asian nation worked on its CBDC creation for years. Another country that has announced its creation of the digital currency is Jamaica, and the nation is partnering with an Irish-based tech company to actualize that goal.

The country has been making lots of moves lately regarding the central bank-issued digital currency, which would begin around May. Other countries have announced CBDC plans and have commenced work in Japan, Australia, and others asides from China and Jamaica. Bitcoin’s unexpected success is the influence behind the nation’s push to introduce central digital currency.

Jamaica is partnering with Irish-based fintech for CBDC

Jamaica’s central bank, the Bank of Jamaica, released some new information via a press release regarding virtual money creation. The bank explained that it would be partnering with eCurrency mint, a crypto-related firm, which has experience in creating central bank currencies and issuance. The firm would head the Jamaican project for the minting of the virtual currency.

A while ago, the country had received applications from solution providers regarding creating its virtual money around 2020. The apex bank explained that it would not be using crypto tech for the creation of its virtual asset.

Governments have mixed feelings about cryptocurrencies, especially since many bad players have used the medium to carry out illegal activities such as money laundering, terrorism funding, and other illicit acts. Many nations have found a way of regulating the sector to prevent it from becoming a threat to society. This might be the reason for Jamaica’s refusal to use the technology to create its own CBDC.

The selected tech firm is an Irish-based company, and the report shows that it has worked with many central banks to develop appropriate technology to suit their CBDC needs. The press release shows that the country would commence the first phase of the currency creation by May with the central bank’s Fintech Regulatory Sandbox’s help.

Other nations show CBDC plans also

The fintech company would assist the country in testing protocols throughout the first stage, which the country would complete by the year’s ending. Asides from assisting in trials and testings, the firm would become its CBDC service provider when the country officially launches its central bank digital asset by 2022. The government has spoken on the digital asset a lot of times and has clarified that both individuals and businesses would use the virtual money to make payments.

Some sources explain that Jamaica is one of the most crypto-friendly nations globally and has lenient laws regarding cryptocurrencies and other digital assets. The nation is one of the first nations within the region to commence plans on creating a CBDC. Another country within the region is the Bahamas, which became the first nation to launch its own Central Bank Digital Currency. Other Caribbean states haves been showing interest also.