Business leaders have welcomed the proposed introduction of a central bank digital currency (CBDC), which is deemed consistent with the Government’s quest to transform Jamaica into a digital economy and facilitate financial inclusion for more Jamaicans.
The Bank of Jamaica (BOJ) is spearheading the implementation of the CBDC, a digital form of central bank-issued legal tender that can be exchanged on a one-to-one basis with physical cash.
Making the formal announcement during his 2021/22 Budget Debate presentation in March, Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke said a CBDC pilot will be undertaken this year, ending in December, with a full rollout slated for early 2022.
Business analyst, Warren McDonald, says the CBDC augurs well for the thrust towards greater financial inclusion, in light of data suggesting that approximately 40-50 percent of economic/business activities are informal and that many of these persons do not have bank accounts.