The Caribbean Leading blockchain companies OneLedgerTech and 876solutions have discussed the benefits of blockchain CBDC and jamaica's prioritizing broad dissemination of the digital currency.
Discussions on digital currency (CBDC) issued by central banks have recently begun in earnest. Due to the world becomes digital, faster and more convenient payment methods are needed, and cash availability is expected to be decreased sharply in the future. The demand for private-led digital currency is accelerating the change by giving fresh impetus to remittances and liquidation payments related to cross-border transactions that have been behind the up to date technology.
Amid this trend, the central banks in the world, a vital organization of the current financial system, have begun to respond in earnest to market demands led by technological development.
Jamaica is the first country in the Caribbean, executing CBDC. The Bank of Jamaica (BoJ) minted the country’s first batch of central bank digital currency (CBDC) in early August, with A total of J$230 million dollars in CBDC will be issued to deposit-taking institutions and authorized payment service providers during the CBDC pilot exercise which ends in December.
During the live stream, George Connolly and Trevor Forrest have mentioned that BOJ has decided to work with an Irish tech company over Caribbean companies. Currently, in the Caribbean, no firm can scale the aptitude the skill sets can deliver. So it is unfortunate that BOJ CBDC is not on blockchain that OneLedger or 876solutions could be involved.
Why didn’t BOJ choose blockchain while it’s a trendy technology for CBDC
Lack of blockchain technology expertise in BOJ and lack of trust in blockchain / Cryptocurrency would explain why Jamaica has gone for RTGs over a blockchain.
To implement blockchain CBDC, the government has to set regulations of cryptocurrency has to come first and Citizens have to start understanding and getting comfortable with blockchain, it’s a new technology, and it takes time to understand to bring needs of fundamental changes.
What are the benefits of CBDC?
- All transactions are trackable for taxation. This will enable efficient capital plans based on the budget associated with all the variables in the equation.
- Can prevent and track the black economies/crime-related transactions.
- All grey market transactions will be visible - grey market refers to the people who have no digital financial footprint of any kind due to all transactions made in cash.
- Identification management will be easier and secure; unique ids are given to all individuals and companies.
- l/c using smart contract will give credibility for b2b transactions, lower the processing times and fees and giving transparency as all stakeholders can see all transactions.
Why does blockchain technology need for CBDC?
Blockchain is a very secure and sophisticated ledger of transactions stored in a database. All the transactions are verified and validated using a consensus algorithm in a unique and immutable way.
There are 5 unique benefits that blockchain is giving.
- Transparency - everyone can see transactions.
- Pseudonymity - only the goverment will be able to see my identity.
- Chronology - every transaction can be traced back.
- Immutable - it’s impossible to change or remove any transactions.
- Secure - it’s the most secure technology that existed, impossible to hack in the decentralized environment.
Our mission is to be appealed as Blockchain CBDC experts in the Caribbean sectors to unsure the stakeholders that digital transformation can be executed on blockchain and increase its awareness and adoption.
We are open to any discussion and talks with any company and people interested in blockchain technology. So feel free to contact us.
For more information, please re-watch the youtube live stream and look at our blockchain solution pages.