Bank of Jamaica mints first tranche of its CBDC as part of tests

Karthik Subramanian

The Bank Of Jamaica, in a ceremony, has minted the first instalment of its central bank digital currency (CBDC) JMD on August 10 as it looks set to adopt digital currencies in the coming months.

The full tranche is expected to be of size 230 million JMD and is part of the bank’s efforts to digitize the Jamaican economy as soon as possible. This is part of a pilot project that is expected to end by this year and these will be issued to payment service providers and other financial firms to check the robustness and the stability of the system once the CBDCs are introduced.

This project is fully supported by the government as the Minister of Finance, Nigel Clarke, vowed to bring in laws for the regulation and control of digital currencies by the end of the fiscal year. All the laws around the world are designed for fiat currencies only and so more than the introduction of the CBDCs, the real challenge would be to bring in laws for their regulation and ensuring that the digital currencies do not affect the existing monetary system.

One of the main advantages seen in CBDCs by the Bank of Jamaica is that it would be able to reach out to the far corners of the country with the digital currencies and would also be able to bring the unbanked aboard the banking system. This would be a win-win situation for all as the government and the BOJ would be able to deliver benefits to the new users and the users would also be able to make use of all the opportunities that this could provide in the long run.

Not only Jamaica, but many other central banks all around the world look at digital currencies as a means to solve this problem and bank the unbanked over a period of time. The digital currencies may not necessarily be in the form of cryptocurrencies but can be in any form that can be stored and transacted via digital wallets. It is estimated that over 60 central banks around the world are in various phases of testing and piloting the CBDCs with Venezuela announcing the launch from October while China is also expected to be the first country, among the larger ones, to introduce CBDCs in the coming months.

Read this next


Investors transfers $424 million out of bitcoin funds in six weeks

Despite bitcoin’s decent surge last week, which took the primary cryptocurrency up 70% from the year’s low, digital asset investment products saw outflows for the 6th consecutive week.

Digital Assets

OKX has $9 billion in ‘clean assets’, shows latest proof of reserves

OKX, formerly known as OKEx, has released its fifth proof-of-reserves report amid increasing demand of crypto investors asking for transparency from exchanges they trade with.

Digital Assets

Circle seeks France license to launch Euro stablecoin

Circle, the issuer of the second-largest stablecoin by market capitalization, is seeking to get a dual registration in France as it aims to on-shore its flagship product for the European market – EUROC – a reserve-backed stablecoin.

Digital Assets Among Minority of Successful Companies to Renew Coveted Estonian License has successfully renewed its virtual currency service license from Estonia’s FIU for the third year in a row, despite regulatory changes that have made it harder for virtual asset providers to meet the required standards.

Inside View, Institutional FX

Time for brokers to add options trading as volumes explode on high volatility

“Usually, adding options to the typical CFDs and equities offering leads to fragmentation of the platform technology as many brokers will need additional back-end and front-end components, and that could be an important barrier for them. Apart from that, legal hassle and costs associated with proper licensing of market data could be a barrier at first. We are seeing this trend among market data vendors and exchanges to make it easier and more affordable.”

Metaverse Gaming NFT

GCEX’s DeFi education and prime brokerage offering available in DubaiVerse

“We are excited to be part of the developments of The Sandbox and to join other top players in the region, including our regulator, Dubai’s Virtual Asset Regulatory Authority (VARA), as part of the DubaiVerse. This is a great opportunity to bridge the gap between Web3 early adopters and GCEX clients, building a community around Web3 and digital assets.”

Digital Assets

Circle wants Fed to back USDC stablecoin after “very serious stress test” with collapse of SVB

The collapse of Silicon Valley Bank allegedly proves Circle’s point that there is a need for its USDC stablecoin to be backed by the U.S. Federal Reserve with its U.S. dollars held at the Fed.

Digital Assets

Google searches for and exploded by 300% amid FTX collapse

“The findings emphasize the importance of staying on top of market trends and being able to pivot strategies quickly and also offer valuable insights into the current state of the market and the behavior of traders, providing investors with valuable information to make informed decisions about their investments.”

Institutional FX

iS Prime reports £35m turnover, £16.2 million pre-tax profits, £37 cash balances

“We have plans in place to evolve the business over the next year, driving further growth for both iS Prime and for our clients.”