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Subject: DRAFT -- eCurrency Newsletter - March 2021

Newsletter | March 2021

Your source for CBDC development updates

Press Release

March 23, 2021 -The Bank of Jamaica has selected eCurrency as its technology provider for Jamaica's Central Bank Digital Currency pilot project. The BOJ will test the CBDC solution in the Bank of Jamaica's Fintech Regulatory Sandbox in 2021 as it prepares for a national rollout of the CBDC solution in early 2022.

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March 21, 2021 - As a primer on Bank of Jamaica's central bank digital currency, the Jamaica Information Service published an article detailing the technology.

The story highlights:

CBDC is a digital form of central bank issued currency and is therefore legal tender. It is not to be confused with cryptocurrency, which is privately issued and not backed by a central authority. CBDC is fully backed by the Central Bank, the sole issuer.
 The issuance and distribution of the CBDC will be fully integrated with the Bank’s financial market infrastructure, the JamClear® Real Time Gross Settlement System (RTGS). The approach will not compete with deposits in deposit taking institutions, but rather it will leverage the existing financial and telecommunications infrastructures of the country.
To prepare for the introduction of CBDC in early 2022, a pilot CBDC solution will be tested in Bank of Jamaica’s Fintech Regulatory Sandbox between May 2021 and December 2021.

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March 9, 2021 - Jamaica's Minister of Finance, Dr. Nigel Clarke, announced plans for the CBDC pilot to start this year during his annual National Budget Debate speech. Dr. Clarke said, "The Government is concerned about the size of the unbanked population. Access to financial services is essential to improving productivity and well-being. There are individual benefits and there are also spillover benefits to the society, as well.” In the efforts to modernize Jamaica's economy, he said that "with recent innovations in technology, it is possible to introduce alternatives to cash that are cheaper, more secure, more efficient and that offers the prospect of increasing competition in the provision of financial services and of greatly increasing the financial inclusion in our society."

PARTNERSHIP ANNOUNCEMENT

Crunchfish and eCurrency join forces to make Central Bank Digital Currency more easily accessible to all

Crunchfish, a premier Digital Cash solutions provider, and eCurrency, the leading Central Bank Digital Currency technology company, announce a partnership to offer an offline CBDC solution. Read

CBDC DIALOGUE

Retail Central Bank Digital Currencies as an alternative to physical cash is an enticing prospect for many countries; it would significantly reduce costs associated with printing money, ensure the general public has access to central bank issued currency, and could counter illegal acts such as money laundering. Watch

CBDC: End of the Road for Cash? - a panel of experts discuss retail Central Bank Digital Currencies as an alternative to physical cash is an enticing prospect for many countries; it would significantly reduce costs associated with printing money, ensure the general public has access to central bank issued currency, and could counter illegal acts such as money laundering. Watch

IN THE NEWS

In early March the Bank of Jamaica (BOJ) Governor Richard Byles said plans are advanced to develop and implement the use of a central bank digital currency (CBDC). Governor Byles further stated that CBDC is a form of central bank-backed currency and is, therefore, legal tender. It is a fiat currency which means it can be exchanged, dollar for dollar, with actual cash, and is issued to licensed deposit-taking institutions on a wholesale basis. Read

The Indian government will soon introduce a Bill in Parliament that will explicitly ban private cryptocurrencies such as bitcoin, as it concurs with the central bank that enabling private parties to toy with currencies can potentially threaten the stability of the financial sector. Also, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, will facilitate the launch of an official digital currency and bolster an ecosystem around it. The Reserve Bank of India has been working on launching its own digital currency, a step the government's bill will also encourage. Read

CENTRAL BANK OUTLOOK

Preconditions for a general-purpose CBDC

The Federal Reserve note, which was first issued in 1914, is a relatively recent development by historical standards. Today, there are ongoing discussions on a new form of central bank money distinct from physical cash and limited-access central bank deposits. This report focuses on the potential for a general-purpose CBDC that can be used by the public for day-to-day payments. Read

Canadian Universities propose design for CBDC

The Bank of Canada engaged three independent project teams to conduct exploratory design work for a digital currency that, like a banknote, would be widely accessible, secure and denominated in Canadian dollars. Read

Evolution or Revolution? The impact of a digital euro on the financial system

In a speech on 10 February 2021, Fabio Panetta said "At the ECB we are considering whether to issue- alongside euro banknotes - a digital euro: a digital form of money that, just like cash and unlike other means of payment, would be a claim on the central bank instead of a claim on a private intermediary." Read

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Subject: DRAFT -- eCurrency Newsletter - March 2021