JAMAICA IS set to launch its own digital currency this year after a “successful” pilot, according to the country’s central bank. 

The trial for the Caribbean country’s new central bank digital currency (CBDC) started in May 2021 and ended on 31 December 2021. 

According to The Jamaica Gleaner, the Bank of Jamaica (BOJ) used the pilot to test out a range of different services including minting CBDCs and distributing them to retail customers. 

The innovative new service was tested by Jamaica’s National Commercial Bank (NCB) and an Irish digital currency converter company called eCurrency Mint. 

The NCB used its Lynk payment platform during the pilot. 

“National Commercial Bank, based on the extent of their experience in the sandbox, came onboard with the BOJ to test the range of services to be offered using the CBDC solution. Success of the pilot project was dependent on whether a central bank digital currency, along with the attendant technology solution, could be successfully implemented in Jamaica,” the BOJ said in a statement.

An estimated 230m Jamaican dollars (equivalent to £1.1m) of digital currency was distributed to institutions and authorised payment service providers during the inaugural minting ceremony last August. 

The NCB, the first wallet provider, also onboarded 57 customers who conducted person-to-person, cash-in and cash-out transactions through 37 accounts. 

This included transactions with small businesses including local craft jewellers, footwear designers and fashion stores. 

Jamaica is expected to join the Bahamas, Sweden and China who are already issuing digital currencies as legal tender by the country’s main bank.

The use of digital currencies is becoming increasingly important for countries, with the growth of online trading, crypto currencies and NFTs. 

The national rollout for Jamaica’s new digital currency is scheduled to take place in the next three months.