Why did Bank of Jamaica not opt for blockchain?

THE EDITOR, Madam

You might be aware of the ransomware hack of the Colonial Pipeline in the United States on May 7. It reportedly took hackers a couple hours to seize control of 100 gigabytes of information, which prompted nationwide fears of a gasolene shortage. The chief executive officer promptly paid the hackers US$ 4.4 million to recover the information.

In the Caribbean security of citizen’s information, including financial information, is of, or should be, of paramount concern.

As a global leader in launching Central Bank Digital Currencies, The Bahamas’ Sand Dollar was launched in October 2020 and the DCASH, the digital currency of the Organisation of Eastern Caribbean States (OECS), was launched March 31 this year. Both digital currencies are engineered by blockchain technology.

In the words of the Eastern Caribbean Central Bank, “Faster, Cheaper, Safer”. In my words, faster than commercial banks, cheaper than commercial banks, and safer than commercial banks. The reaction by one senior banker recently was essentially, “We don’t see the need for it but we will accommodate it”.

Blockchain technology, in my view, trumps centralised technology systems by being truly “safer, faster and cheaper”, with an emphasis on protecting the privacy of the citizen and when applied to cryptocurrencies, offers options for financial wealth creation.

MORE DETAILS NEEDED

Bank of Jamaica (BOJ), on the other hand, owes it to Jamaicans to tell them why they opted not to use blockchain technology. Why should Jamaicans rest comfortably that their private information, financial and other personal details, are secure against world-class hackers. Provide granular details, not assurances.

Assurances no longer sit well with citizens when in the Caribbean we have seen the websites of government and private entities hacked. The systemic threat to financial and other systems in the Caribbean is a real threat and in the case of the United States, ransomware attacks are nothing new.

Worldwide, citizens no longer trust the financial systems and their governments to guarantee security of their private information. So BOJ should give us the facts on the Jamaican digital currency and the extent to which it will be secure. Give Jamaicans that peace of mind.

HALLAM HOPE

St James, Barbados