The Jamaican central bank has successfully completed the pilot test of its central bank digital currency, according to a bank statement. The statement, however, reveals that only one payment service provider participated in the pilot project.
Only one payment provider participated in the pilot
The Bank of Jamaica (BOJ) recently revealed that it has successfully completed the trial of its central bank digital currency (CBDC). The BOJ’s claim follows the completion of an eight-month test that began in May 2021.
However, in a statement released on the last day of 2021, the BOJ reveals that only one institution participated in the pilot. The statement explains:
The scope of the CBDC pilot project was limited to those portfolio providers who indicated that they were ready to participate on time. National Bank of Commerce [NCB] Based on the breadth of their sandbox experience, they joined the BOJ to test the range of services to be offered using the CBDC solution.
The statement also explains that the success of the pilot project had been “dependent on the possibility of successfully implementing a CBDC as well as the associated technological solution in Jamaica”.
$ 230 million from CBDC minted
The press release reveals that three activities were carried out during the pilot phase. The first of these activities was the CBDC’s $ 230 million mint “to be issued to depository institutions and authorized payment service providers”. A day after minting the digital currency on August 9, 2021, the BOJ issued $ 1 million of CBDC which was distributed to bank staff.
Then, on October 29, 2021, approximately $ 5 million of CBDCs were issued to the BCN, which marked the first issuance of a CBDC to a depository institution in Jamaica. After receiving the digital currency, NCB then “successfully integrated 57 customers, including 4 small traders and 53 consumers”.
In turn, the 57 clients conducted person-to-person, cash-out and cash-out transactions through “37 accounts and entered into transactions with small traders (local artisan jewelers, shoe designers, and fashion and clothing stores). ) via an NCB. -sponsored event, “Market on the Lawn” held earlier in December 2021. “
Meanwhile, the statement reveals that the nationwide deployment of the CBDC is now expected to begin in the first quarter of 2022. During this period, NCB – which is the only payment service provider authorized to have participated in the testing phase – “Will continue to integrate existing customers and new customers. At the same time, two other wallet providers “will be able to order CBDC from the BOJ and distribute it to their clients.”
Tests to determine the interoperability of transactions between clients of various participating wallet providers will also be carried out during this period, the statement added.
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