As an alternative to the country’s cash economy, the Bank of Jamaica (BoJ) has legalized its CBDC.
The Jamaican Senate has granted the central bank authorization to issue the Jamaica Digital Exchange, or Jam-Dex, which is a CBDC, according to sources. The Jam-Dex will be ready for domestic use later this month, according to Bank of Jamaica Governor Richard Byles.
The digital Jamaican dollar, according to Byles, “provides a more secure, convenient alternative to traditional notes and coins, and may be used without requiring a bank account.”
The Jam-Dex has been in a pilot testing phase since August of last year. It was supposed to debut in the first quarter of this year, but delays delayed it to the second.
New payment mechanisms are being developed.
- Jonathan Dharmapalan, CEO of CBDC technology supplier eCurrency, acknowledged the step, saying, “Legislators in Jamaica have now unanimously moved a digital dollar ahead in Jamaica.” This can be used to pay off any debt in Jamaica. It serves as a means of exchange. It’s the accounting media.”
- “Because it’s digital, you don’t have to be in the same place at the same time to execute a transaction,” he said before adding, “It’s a really, really powerful tool.”
According to the Jamaica Observer, the JMMB Group, a financial services organization, wants to develop various new products to help the Jam-Dex gain traction, including point-of-sale, e-commerce, and new payment alternatives.
The CBDC is also being marketed by the National Commercial Bank (NCB) through its Lynk wallet, according to the publication.
