Caribbean News

Central Bank Digital Currency to Facilitate Financial Inclusion

Published

2 months ago

November 30, 2021

#Jamaica, November 30, 2021 – Deputy Governor of the Bank of Jamaica (BOJ), Natalie Haynes, says Central Bank Digital Currency (CBDC) implementation is consistent with the Government’s overall financial inclusion strategy.

CBDC is a digital form of central bank-issued currency and, therefore, is legal tender that can be exchanged dollar for dollar with physical cash. Households and businesses will be able to use CBDC to, among other things, make payments as now obtains with cash.

“Financial inclusion is access by all to financial services and products [and] is a critical factor of Jamaica’s digital transformation. The Bank of Jamaica contributes to this by acting in its role as technical secretariat of the country’s national financial inclusion strategy,” Mrs. Haynes notes.

Through the CBDC, the BOJ will contribute to the financial inclusion process by enabling Jamaicans to seamlessly access financial products and services.

“CBDC is simply a digital form of money issued by a central authority. The Bank of International Settlements defines CBDC as a digital payment instrument denominated in the national unit account that is a direct liability of the central bank. In other words, the Central Bank is responsible for the CBDC that is issued,” Mrs. Haynes explains.

“With amendments to the Bank of Jamaica Act, CBDC will become legal tender. Legal tender means that all merchants, whether for goods or services, will confidently accept CBDC and know that they will get value for the good or the service that they provided,” she adds.

Mrs. Haynes points out that the CBDC should not confused with cryptocurrency.

“CBDC is not a cryptocurrency. A cryptocurrency is privately issued, and it’s not backed by a central authority. So, you have some of them out there [such as] Bitcoin, Ethereum and Ripple,” she informs.

The Deputy Governor tells JIS News that the central bank will be using the hybrid approach in introducing its CBDC.

“BOJ will not be issuing CBDC directly to retail customers. We are going to be issuing directly to deposit-taking institutions (DTI) that are licensed under the Banking Services Act; these are commercial banks, building societies, and merchant banks,” Mrs. Haynes outlines. She adds that in order to foster financial inclusion, “we will also issue to a group called payment service providers, that are currently operating and testing payment products in the bank’s FinTech regulatory sandbox”.

The BOJ will be issuing CBDC to payment service providers and DTIs who, in turn, will distribute it to their customers, clients, merchants and consumers through either an E-money wallet, card networks or other digital options for persons and entities to utilise in transactions.

“In this case, the BOJ issues to wallet providers (the collective name for DTIs and payment service providers) on a wholesale basis, just as we do with physical cash. When a bank wants physical cash, they place an order with BOJ and then they send their cash in transit courier to BOJ to collect the cash. In this case, they will still place their orders with BOJ, and we will issue them with the digital currency,” Mrs. Haynes explains.

The Deputy Governor is reassuring Jamaicans that the CBDC will add to the current pool of retail payment instruments in Jamaica, such as debit and credit cards, as well as prepaid cards offered by payment service providers.

“Think of it, basically, as cash that you have in your wallet. In this case, you’re going to have a digital purse or wallet. It is not e-money, which is a liability of e-money issuers, and, of course, because it is very much like cash, it does not earn interest. CBDC in Jamaica is going to be only for domestic use and will not be used for cross-border transaction,” Mrs. Hayes says.

She points out that one chief benefit of the CBDC is that there will be a more inclusive system for persons where every citizen will have a quick, safe and reliable digital retail payment instrument.

“It’s more efficient than cash. It is instantaneous, even for remote transaction, meaning you don’t have to be in front of the person. For cash, you have to be in front of the person to exchange cash. We can do person to person, person to business, and it goes both ways,” Mrs. Haynes adds.

She says the CBDC is also an incentive for persons who are apprehensive about the formal banking system to reap benefits if they plan to start a business.

“For example, you have a CBDC wallet with bank ‘A’ and then after a couple months of operating, your bank knows you and you can say ‘hey, I need a loan for my medium to small or microbusiness’; it gets you into the formal system. If your bank doesn’t know you and doesn’t know you exist, then it’s going to be very difficult to obtain those facilities,” Mrs. Haynes tells JIS News.

To access the CBDC, the Deputy BOJ Governor says customers will need to have a wallet, which is going to be different from your regular bank account.

“Of course, it’s going to be much easier and simpler to obtain with streamlined and simplified Know Your Customer (KYC) requirements,” Mrs. Haynes states. She also states that once an individual has a relationship with a bank, in that they already have a bank account with them, they can automatically get a CBDC account.

For those who are unbanked or do not have an account, then DTIs and authorised payment service providers will be able to onboard these individuals, who can then request a CBDC account.

To carry out CBDC transactions, consumers will be able to access, download and deploy a mobile wallet app on any mobile phone, tablet or similar device using the networks of both major telecoms service providers.

Customers will be able to top up their accounts with CBDC through all authorised agents or smart ABMs and do business using CBDC phone-to-phone with merchants.

“To get CBDC wallet, simply contact your wallet provider of choice. If you do not have a bank account, all you need when setting up your CBDC account is your name, Tax Registration Number (TRN), and government-issued photo ID (driver’s licence, passport or voter ID card),” Mrs. Haynes said.

When the CBDC is fully launched, all Jamaicans will be eligible for a CBDC wallet subject to the simplified KYC and the wallet providers’ risk assessment of the customer.

The BOJ is slated to commence national rollout of the CBDC platform during the first quarter of 2022.

It is anticipated that, by then, additional deposit-taking institutions (DTIs) will be onboarded to enable the issuing of wallets to facilitate an expansion of the number of individuals and businesses utilising the currency.

National Commercial Bank (NCB) is currently the sole DTI participating in the CBDC pilot, which commenced in June and is slated to conclude in December.

By: Lisa Rowe

Release: JIS

Bahamas News

Agreement inked between Bahamas and Dubai

Published

18 hours ago

January 18, 2022

Deandrea Hamilton

#DUBAI, UAE, January 18, 2022 – A Memorandum of Understanding was signed between Minister of Foreign Affairs and the Public Service of the Commonwealth of The Bahamas, Hon. Fred Mitchell and His Excellency Sheikh Shakhboot bin Nahyan Al Nahyan, Minister of State for Foreign Affairs and International Cooperation of the United Arab Emirates, today in Dubai.

The signing of this MOU begins a fruitful relationship between The Bahamas and the UAE. The UAE government is committed to providing technical assistance through their Technical Assistance Programme. Embedded in the agreement, is a provision that at least fifty percent of the participants in the training programme are women.

Both The Bahamas and UAE are committed to working together on several fronts for the mutual advancement of both countries. The exchange of information will be invaluable as The Bahamas continues to push through the setbacks of the pandemic toward national and economic growth.

Photo Caption: Prime Minister and Minister of Finance of the Commonwealth of The Bahamas the Hon. Philip Davis, centre, Minister Mitchell, left, and HE Sheikh Shakhboot bin Nahyan Al Nahyan.

(Photo/OPM Communications)

Bahamas News

MP’s Graduate with Parliamentary Governance Certificates

Published

19 hours ago

January 18, 2022

Deandrea Hamilton

January 18, 2022 – The Caribbean Democrat Union (CDU), in partnership with the Conservatives Westminster Foundation for Democracy (WFD) Programme, held an Online Graduation Ceremony on Friday January 14^th 2022 for fifteen (15) Members of Parliament who successfully completed a one year certificate programme in Parliamentary Governance with McGill University in Canada.

This professional development certificate programme is recognized by the Commonwealth Parliamentary Association (CPA) and provided MP’s with important theoretical and practical knowledge in executing their roles and responsibilities as legislators. Sponsorship for the MP’s was provided by the Conservatives WFD Programme.

The successful graduates included:

Tracy Panton– MP Albert, UDP, Belize
Shyne Barrow – MP, Mesopotamia, UDP, Belize
Senator Hon. Sheena Pitts – UDP, Belize
Kerensia Morrison – MP St. Catherine North Eastern, JLP, Jamaica
Tova Hamilton – MP, Trelawny Northern, JLP, Jamaica
Dr. Michelle Charles – MP, St. Thomas Eastern, JLP, Jamaica
Tamika Davis – MP, Hanover Western, JLP, Jamaica
Rhoda Crawford – MP, Manchester Central, JLP, Jamaica
Anne Marie Vaz – MP, Portland Eastern, JLP, Jamaica
Krstyal Lee – MP, St. Anne North Western, JLP, Jamaica
Robert Miller – MP St. Catherine South Eastern, JLP, Jamaica
Heroy Clarke – MP, St. James Central, JLP, Jamaica
Dwight Sibblies – MP, Clarendon Northern, JLP, Jamaica
Morland Wilson – MP, Westmoreland Western, JLP, Jamaica
Senator Hon. Shevern John – NDP, St. Vincent and the Grenadines

The Online Graduation Ceremony was attended by The Most Hon. Andrew Holness Prime Minister of Jamaica, Maria Miller Conservative MP UK, Dr. Hon. Godwin Friday Leader of the Opposition St. Vincent and the Grenadines, Hon. Patrick Faber Leader of the Opposition Belize, Carola Weil Dean of Continuing Studies McGill University, Nick Francis Secretary General CDU, and other officials from the UK Conservative Party’s International Department and Faculty and Staff from McGill University.

Mr. Nick Francis in his remarks at the ceremony noted that this initiative was birthed through greater engagement and consultation with stakeholders in the region in light of the challenges posed by the COVID-19 pandemic and he was grateful to the administrators at McGill University for partnering with the CDU and the Conservatives WFD Programme to make this online training possible.

Hon. Patrick Faber and Dr. Hon. Godwin Friday extended congratulations to the graduates and expressed gratitude to the Conservatives WFD Programme, the CDU and McGill University on this successful collaboration to enhance parliamentary democracy in their respective countries.

A second cohort of trainees will commence the Parliamentary Governance Certificate with McGill University in March of this year and will include young prospective MP’s.

Quotes:

Dean of Continuing Studies at McGill University Carola Weil extended congratulations to the fifteen (15) MP’s for successfully completing the yearlong certificate programme in Parliamentary Governance and noted that this was an “important step towards the continuation of good governance and democracy around the world”

In addressing the graduates at the ceremony, Prime Minster the Most Hon. Andrew Holness noted his expectations that the training received will help to inform their advocacy, guide their involvement in policy development, and “contribute to a new cadre of political representatives that will always strive for the highest standards of excellence in governance, in parliamentary practice, and in political representation.”

Conservative MP Maria Miller UK in a pre-recorded message to the graduates (the majority being new female MP’s) noted that in light of the challenges facing women in politics, “the Conservative WFD Programme is committed to strengthening democracy by creating a much more inclusive, accountable and transparent political system.”

Press Release: CDU

Bahamas News

PM Davis’ Remarks at Wreath Laying Ceremony – Majority Rule Day 2022

Published

4 days ago

January 15, 2022

Deandrea Hamilton

Happy Majority Rule Day to all and thank you for coming

I thank the organizers of this wreath laying ceremony because this auspicious occasion is a symbolic reminder of the significant role the Progressive Liberal Party and the Father of the Nation played in bringing about one of the most consequential and transformational events in our history, eclipsed only by the abolition of slavery in 1834.

With the addition of National Independence on 10th July 1973, these three epic events changed the course of Bahamian history forever and etched in the annals of history the Bahamian national identity and the depth of our indomitable spirit.

We must never grow weary of telling our story lest we lose our identity and heritage as a people.

Further — and more nationally — as a free, modern, democratic and independent state, history must record that Majority Rule Day is also an occasion where all Bahamians come together to reflect on and celebrate the enduring principles of democracy. Today then, I stand with my Bahamian brothers and sisters from all walks of life in memorializing this day as a seminal moment in the ever-evolving Bahamian story.

MAJORITY RULE IS A MAJOR TRIUMPH FOR DEMOCRACY AND FREEDOM, HUMANITARIAN PRINCIPLES THAT WE HOLD NEAR AND DEAR TO OUR HEARTS. THESE PRINCIPLES ARE ALSO THE CHIEF PHILOSOPHICAL CORNER STONES AND PILLARS ON WHICH THIS COUNTRY WAS BUILT AND WILL SUSTAIN US FOR GENERATIONS TO COME.

We must never allow our detractors to minimize, trivialize or relegate this great day and event to the scrap heap of historical irrelevance. To do so is to dishonour the vision, memory and legacy of those great courageous souls on whose shoulders we stand.

We cannot and must not conveniently disinherit our glorious legacy because our truth is inconvenient to some.

A cause rooted in social justice, freedom fighters courageously stood in the vanguard of change – unyielding in their demand that all were created equal — with God-given rights to human dignity without regard to race, gender, colour or creed. This stand of conscience galvanized a nation, a generation of Bahamians, and in the process significantly reshaped the character and national identity of The Bahamas forever.

I pay tribute to the many unsung heroes and heroines whose endearing and enduring legacies of selflessness and shared sacrifices remain the gold standard of our national culture in both public life and in the way we conduct our personal affairs with one another.

I continue to draw, conviction, inspiration and influence from the passion of the Suffragettes, the labour movement, the church and from countless Bahamians who put it all on the line to secure a more perfect Commonwealth.

Speaking of passion, conviction, inspiration and influence, I wish to take a moment to recount the role the late Sir Sidney Poitier played and the contributions he made during our journey to Majority Rule.

As a Bahamian with dual citizenship, Sir Sidney used his celebrity status in the struggle for civil rights — fighting racism, bigotry and injustice in both the United States and The Bahamas.

Many Bahamians still recall his speaking to the issue at a reception in his honour to the then United Bahamian Party (UBP) government in recognition of his Academy Award for ‘Lilies of the Field.’

A well-known story in PLP circles is his assistance to the Progressive Liberal Party in the run up to the 1967 general elections. There is an iconic photo of Sir Sidney and Sir Lynden at the back of an open limousine celebrating the 1967 victory.

May he rest in peace.

As a beneficiary of their sacrificial work, I thank them all — Sir Lynden Pindling, Sir Milo Butler, Sir Randal Fawkes, Sir Clifford Darling, Dame Doris Johnson and Sir Sidney Poitier — for their passion, faith, perseverance and uncompromising commitment to social justice, democracy, freedom and a sense of fair play.

It is indeed an honour and a privilege to stand on their broad proverbial shoulders to continue their invaluable work in building a stronger and more perfect Commonwealth to positively impact the lives of generations yet unborn.

Our cause is indeed national, inclusive and intergenerational in its nature, range and scope.

On behalf of my wife Ann Marie, my cabinet and parliamentary colleagues, my government, the officers and members of the Progressive Liberal Party, I extend best wishes and highest regards to the people of The Bahamas as we celebrate Fifty-Five years of Majority Rule.

May Almighty God continue to bless the Commonwealth of The Bahamas.