The Bank of Jamaica (BOJ) suggests the agency must seek a court order to prosecute Central bank digital currency (CBDC) transactions apart from wallet holders and issuers, as CBDC, those emerging digital currencies that do not have a separate code that can be traced.
Jamaica Observer reported Wednesday, citing the BOJ, that the central bank’s digital currency (CBDC) has a digital footprint and therefore has tracking capabilities. It is necessary to protect data protection for customers.
The Central Bank of Jamaica outlines the following:
“For reasons of confidentiality and data protection for customers, however, this information will not be passed on to the Bank of Jamaica or other authorities. This information may only be passed on on the basis of a court order. The Bank of Jamaica only collects general data for economic analysis. “
CBDC is a digital legal tender issued by the country’s central bank stands for Central Bank Digital Currency and represents the digital form of a nation’s fiat money (a currency that is backed by trust or reliance on the regulatory government). In contrast to traditional cryptocurrencies, cryptocurrencies are usually issued by private companies without government approval. Hence, the Jamaica CBDC can have the same payment and savings functions as cash.
The BOJ stated that because of the features of their CBDC, it would circulate in a larger area without the cost of making banknotes and coins.
Jamaica’s Treasury Secretary Nigel Clarke has announced that the country plans to launch its central bank digital currency (CBDC) in 2022.
As Blockchain.News reported on August 11, the project being developed by the BOJ’s CBDC team has entered a pilot phase in which a total of $ 230 million in CBDC will be minted and deposited with depository institutions and authorized payment service providers in December 2021 .
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