The Bank of Jamaica will launch its digital currency – the Jamaican dollar – soon this year.
Prime Minister Andrew Holness remarked that the new plan would serve the country’s digital payment foundation and facilitate further plans like financial inclusion, increase transaction speed and reduce banking costs for citizens.
In a Twitter post, Holness revealed the news and several other schemes to be implemented soon.
The Bank of Jamaica will roll out our own digital Jamaican dollar in 2022 after a successful pilot during 2021.
— Andrew Holness (@AndrewHolnessJM) February 10, 2022
In December 2021, the Bank of Jamaica said that it had successfully completed a pilot project issuing 230 million digital Jamaican dollars.
The government came up with the central bank digital currency system to include a majority of Jamaicans who are away from the financial system and make them a part of the formal financial benefits. The virtual currency would then replace 5% of Jamaican dollars each year.
For creating the digital currency, Jamaica has joined the Bahamas and Eastern Caribbean Central Bank.
The National Commercial Bank has signed up 57 customers to access the new currency. The customers can sign up for a digital wallet and deposit funds in exchange for digital currency.
Apart from the digitalization of currency, the government looks forward to implementing large infrastructure projects like the Southern Coastal Highway Improvement project, four-lane roadway construction from Harbour View to Yallahs, new Houses of Parliament, etc.
Report: ‘Digital currency will become legal tender in the next…’
Crypto adoption across the world is growing at a much faster pace. New data suggested four in five American retail organizations are expecting digital currency payments in the next five years.
They also believe suppliers will accept payments in both stablecoins and cryptocurrencies. There is an overall high expectancy for the crypto influx in American retail markets in the coming years.
One of the big four accounting firms Deloitte published a report titled “Merchants getting ready for crypto.” The survey polled 2,000 senior executives at U.S. retail organizations from 3 December to 16 December last year.
While the figures are limited, it is important to know this survey was taken during a bullish market in December 2021. The crypto market has fallen by leaps and bounds in 2022 with BTC down to near $30,000 and ETH struggling to hold $1,800. Also, stablecoins are not expected to receive such glowing reception after the Terra crash in May earlier.
“Nearly three-quarters of those surveyed reported plans to accept either cryptocurrency or stablecoin payments within the next 24 months.”
Merchants have displayed different motivations for adopting digital currency payments. With the evolving technology, they believe cryptocurrencies will improve customer experience. They believe crypto will also increase their customer base and give their brand “a cutting edge.”
Most merchants agreed that organizations accepting digital payments have a competitive edge. They also believed digital currencies will become legal tender in the next decade with its growing use for everyday purchases.
Any relief in June for altcoins?
Meanwhile, major coins such as Bitcoin and Ethereum have not shown any major movement during the first week of June, as per a Santiment tweet. Most altcoins have underperformed in this week with a couple of exceptions. Fair to say, this week the crypto price returns show a “mixed-bag” of results. ADA and LINK are two anomalies among major altcoins to have posted huge returns this week.
There has also been a huge increase in stablecoins this week with the launches of Djed and USDD. USDC became a prominent topic of discussion during the week after posting a 750% + increase in its social volume.
Report: 83% of US retailers think ‘digital currencies’ will become legal tender in 10 years
Report: 83% of US retailers think ‘digital currencies’ will become legal tender in 10 years Oluwapelumi Adejumo · 10 hours ago · 2 min read
An overwhelming majority of Deloitte respondents believe that crypto payments would become prevalent in their industry within the next five years.
2 min read
Updated: June 9, 2022 at 4:15 pm
Cover art/illustration via CryptoSlate
A new Deloitte survey has revealed that US retailers believe that crypto adoption among businesses will rise to a new high as 83% of them think ‘digital currencies’ will become a legal tender within the next ten years.
The report highlighted that 85% of the respondents expect crypto use for purchase to increase significantly over the same time frame.
To stay ahead of the curve, 75% of US retailers have begun plans to start accepting crypto or stablecoin payments within the next two years.
Over 50% of retailers with revenue above $500 million have allocated at least $1 million of their budgets to building payment infrastructures for crypto.
On the other hand, 73% of retailers making between $10 million and $100 million annually are also investing between $100,000 to $1 million to build the necessary infrastructure for crypto payments.
Additionally, the survey revealed that 87% of retailers currently accepting crypto payments believe that they have a competitive advantage in the market presently.
The report is titled “Merchants Getting Ready For Crypto” and was prepared in partnership with PayPal. The report surveyed 2000 senior executives at diverse US retail organizations such as electronics, cosmetics, fashion, digital goods, foods, beverages, etc.
Consumer crypto interest is pushing businesses to act
Consumer interest in crypto is at the root of the merchants’ plans of adoption. 64% of the retailers claim that their consumers have shown significant interest in crypto payments, and around 83% expect this interest to rise.
Around 50% of the surveyed retailers believe that adopting crypto payments will help improve their consumer experience and expand their customer base. In addition, 40% hope that it will help create a better perception of their brand in the public’s minds.
Merchants identify challenges
While the retailers have expressed high optimism and shown great belief in the crypto industry’s growth, they also have identified certain challenges that could hinder the adoption of the space.
According to the report, the volatile nature of the industry, alongside other issues like the security of payment systems and the need for regulatory clarity, could impede the adoption.
Another challenge identified is integrating crypto with the traditional financial system. However, that could change over time as a new US bill submitted by Senators Cynthia Lummis and Kirsten Gillibrand looks to incorporate crypto into the traditional financial system.
FED survey highlights this ‘concerning’ gap regarding crypto as the U.S. adults…
The digital asset sector, despite several hiccups, has boomed in the last few years, especially in terms of adoption. Across the globe, investors, traders, and renowned financial institutions have acknowledged the asset class. Well, the U.S. is no different.
The Federal Reserve issued its annual report examining the financial lives of U.S. residents. The 23 May report shed light on the extensive usage of cryptocurrencies as an investment tool rather than a purchasing mechanism.
For starters, this is the very first time that a U.S. regulatory board incorporated cryptos in one of its surveys. It’s the latest sign of the U.S. central bank’s growing interest in understanding how the booming crypto economy is (and isn’t) mixing into the picture. As a part of this study, 11,000 adult Americans were taken into consideration between October and November 2021.
In 2021, 12% of surveyed adults held or used cryptocurrency, according to the report. The data showed that crypto was favored as an investment tool over a transactional one. Only 2% of adults used it for purchases and 1% to send money to friends or family.
Lower-income adults used crypto for transactional purposes mainly due to the lack of traditional bank accounts as evident in the graph below.
The chart showcases the strength of cryptocurrencies as a remittance tool as compared to traditional remittance services. Even the legacy banking framework for international money transfers.
But there’s a monetary gap- As an investment medium, only the higher-offs fancied the said asset class. The FED found that a large portion of adults with high incomes (greater than $100,000) held investments in cryptocurrencies.
“Those who held cryptocurrency purely for investment purposes were disproportionately high-income.”
46% of pure-play investors made $100,000 or more- Almost all of them had a bank account. The survey further went on to state,
‘“99% of those investing in cryptocurrency, but not using it for transactions, had a bank account, and 89% of non-retired cryptocurrency investors had at least some retirement savings.”
Good riddance of stormy clouds?
Indeed, this is a promising development for the cryptocurrency sector. However, it’s important to note that the sentiment and narrative change with time. Despite moving in the right direction, this “niche” sector still remains a victim of illicit activities and regulatory headwinds. Thus, the nature of the cryptocurrency market still remains extremely uncertain at least for the foreseeable future.
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