True, we don’t print our own currency, but...
Dear Editor,
This is in response to a letter to the editor from Maurice White, published in the Jamaica Observer dated December 28, 2020, titled ‘Incomplete Independence’.
As evidence, he makes the point that we do not print our own currency. He is correct, we do not.
A recent report indicates that approximately 60 per cent of central banks globally outsource the printing of currency. This is because the printing or minting of currency is a sophisticated production process which requires specialised skills and security features that are not easily available within central banks.
With increasing technological innovation, the Bank of Jamaica is embarking on a new currency initiative, a central bank digital currency (CBDC), which will minimise the dependence on external entities. This would see the central bank minting and issuing digital cash at a tiny fraction of the annual cost for printing physical cash.
This is not just a cost-saving venture for the country, but a timely transformation as the world becomes more digitised and will facilitate the inclusion of most Jamaicans in formal financial services. It coincides with the Caricom initiative to reduce the amount of physical currency in circulation over a targeted period, and in keeping with the operations of a modern central bank.
Thank you, Mr White, for raising the issue. The bank will keep the nation informed through the media on the status of CBDC initiative.
Richard Byles Governor
Bank of Jamaica