Jonathan Dharmapalan, Founder and CEO of eCurrency, has ensured that Jamaican digital currencies are not a security issue. In an exclusive interview with Carrilla Reynolds on the acquisition of shares, Dharma Paran said the technology used to operate the Central Bank Digital Currency (CBDC) could prevent digital funds from being forged or infringed. ..
Recently, the Bank of Jamaica cast the first $ 230 million in CBDC issued to depositors and licensed payment service providers during the pilot period ending in December.
Kalilah Reynolds Media witnessed this process with the Bank of Japan’s Governor Richard Biles and Finance Minister Nigel Clarke. However, for security reasons, video or audio recording is not allowed.
The foundry was provided by eCurrency to the Bank of Jamaica (BOJ). According to Dharmapalan, eCurrency does not perform minting itself, but will continue to provide background support until the central bank takes full control of the process. “We provided banks with an encryption engine to go through that process and prevent them from being counterfeited,” said Dharmapalan, who said currency security is divided into three layers. ..
In addition to the security of a currency, he said, there is also the security of people who use that currency because they need to protect their privacy, personal information, and so on. The third layer of security is related to the “sovereign” security that is usually associated with your home currency. In other words, it has become legal tender with the support of the Bank of Japan.
“It all starts with a mining-enacted security process, which cannot be enabled by anyone. [or] Department; it must be done through a specific management process, “he said.
In addition, Dharma Paran said Jamaica’s CBDC offers higher security than cryptocurrencies, especially because it does not use blockchain technology to run some of these currencies, including Bitcoin. “Blockchain has some very complex features, but it’s very rudimentary. It uses a relatively weak security mechanism for encryption. It’s necessary but not enough. Three We believe that multiple levels of security must be applied at the same time in order for formal security to be met and not achieved using relatively simple blockchain technology, “he said. increase.
eCurrency is responsible for providing new or long-term features that the central bank may require in the CBDC process. eCurrency was announced in March as a pilot’s choice provider, rolling out Jamaica’s digital dollars following the competitive bidding process.
The debate over central bank digital currencies began more than two years ago between eCurrency and the Bank of Japan, and the company is discussing currencies similar to at least 80 other central banks. However, Jamaica became the first client. “Many other central banks considered CBDC to be Star Wars. This was right, not the future, but we had to work to accommodate that future.
Meanwhile, the Bank of Japan’s Deputy Governor Natalie Haynes said there was a scientific reason behind the recently cast CBDC’s 230 million yen. The Bank of Japan will actually issue 5% of the currency to the pilot’s first financial institution partner, the National Commercial Bank (NCB), and the second institution to be introduced in November.
According to Haynes, stakeholders are considering a successful CBDC if they need to achieve a 5% switch between physical and digital cash each year. “It’s scientific and is expected to continue until the end of the pilot,” she said, saying the Bank of Japan will begin issuing CBDCs to the NCB in September. She said interested people could contact the bank to create a mobile wallet and join the pilot. “What we want to do is test the actual transaction, so the NCB wants not only the users but also the CBDC merchants to work together to see if it actually works. I’m thinking, “she says.
She also said that when the time comes, people without a bank account can contact the bank or an authorized payment provider to use digital dollars. She said several payment providers are currently testing solutions in the BOJ’s regulated sandbox. This list includes Alliance Financial Services and Grace Kennedy.
With full deployment in the first quarter of 2022, all commercial banks will participate in the program.
“All Jamaicans, including those who do not have a bank account, are expected to see the CBDC as a payment option for the transition, as it is much safer than cash and, of course, can be used with just a mobile phone anytime, anywhere. I hope it will be attractive to them, “says Haynes.
In the meantime, the general public will soon know about Jamaica’s CBDC’s unique names, taglines, logos and image designs. According to Haynes, the judging process for the recent proposal public contest has been completed and the winners have been notified.
The acquisition of shares in Kalilah Reynolds will premiere on YouTube and Kalilah Reynolds.com at 8 pm on Tuesday.