CBDCs are built on a blockchain network and are like cryptocurrency. However, CBDCs are regulated by central banks and transactions involving them are centralized and traceable. Transactions of cryptocurrencies are decentralised. Jamaica has been working on its CBDC for the past several months and Jam-Dex is to be launched soon. Its testing was completed last year. Jamaica’s Finance Minister Nigel Clarke said all Jamaicans would have access to Jam-Dex through a wallet provider or bank.
A recent report by the Jamaica Observer stated that approximately 17 percent of Jamaica’s population does not have access to the banking system. All Jamaicans with a bank account will be able to receive the Jam-Dex digital wallet automatically. Some other countries like India, USA and Russia are also developing their own CBDC. Russia has already started testing its CBDC called the Digital Ruble. The Atlantic Council’s CBDC tracker shows that 86 countries are developing their own digital currencies. The number of these countries has almost doubled in the last two years. Nine of these countries have already launched their CBDC and 15 countries are testing it.
Finance Minister Nirmala Sitharaman recently said that she expects the Reserve Bank of India to launch a CBDC this year. The US has also asked the Federal Reserve to consider the possibility of developing a CBDC in an executive order on crypto. <!–
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