BOJ selects Irish firm as digital currency tech provider
Published:Wednesday | March 24, 2021 | 12:09 AM
Bank of Jamaica, BOJ, has chosen eCurrency Mint, a company based in Ireland, as technology provider for the digital currency it is developing for the Jamaican market.
The central bank said Tuesday that it will begin testing the digital currency during a pilot roll-out in May, and is targeting 2022 for national roll-out.
Tech provider eCurrency Mint is described as a global leader of the hardware, software, and cryptographic security protocol technology for digital currencies.
In an earlier statement, the central bank indicated that it would not be utilising blockchain technology for its currency, saying it wanted a structure that could seamlessly integrate with transfers of physical currency. The Jamaican central bank digital currency, or CBDC, will function as legal tender alongside notes and coins in the system.
“It is this consideration and prerequisite that led to BOJ choosing a non-blockchain CBDC option. Not using the blockchain technology that is often associated with CBDCs is not because of any major concerns with blockchain, but rather that BOJ is mindful of the importance of utilising a technological solution that would as seamlessly as possible interface with the country’s payment infrastructures,” the central bank said.
BOJ is yet to coin a name for its digital currency.
CBDC is a digital form of central bank issued currency, and is distinct from cryptocurrencies, which are privately issued and not backed by a central authority.
Blockchain is the ledger technology on which digital currencies are built, including cryptocurrencies such as bitcoin. It creates a historical record of each dollar spent in a ledger format, which in the process prevents the risk of fraud and also double-spending – when one dollar is transacted multiple times.
Jamaican consumers will be able to hold digital currency accounts at banking institutions, including persons who currently hold no bank accounts, as the service will be deployed via a mobile wallet and accessible on smartphones and other mobile devices. However, BOJ also said such accounts will not earn interest.