Jamaica’s central bank doubled down on its plans to design a digital version of its national currency. The institution claimed that the financial product would benefit a considerable percentage of residents who do not have access to basic monetary services.
Jamaica’s CBDC Will Help Local People
Jamaica is yet another country that pursues the launch of a central bank digital currency. In February this year, the central bank announced that the product was all set to launch. The organization also chose a name for its CBDC – Jam-Dex.
In a recent interview, the committee chair and deputy governor of the Bank of Jamaica – Natalie Haynes – explained that the upcoming digital currency aims to help Jamaicans who are financially excluded from the monetary network:
“We still have a large percentage of the population who live outside the formal financial system, including those financially.”
The executive further explained that the launch of JAM-DEX aims to digitally transform the entire economy of the island nation.
In his view, financial products would be attractive to those who are willing to use electronic modes of payment such as credit and debit cards. Most of those people had found the use of cash “a burden—or in some cases—dangerous,” Haynes said.
Subsequently, it revealed that the Bank of Jamaica will conduct additional tests on its CBDC during April to ensure flow of transactions. The deputy governor expressed hope that all issues would be resolved in the next four weeks, while the jam-dex should be introduced to the wider society in the coming months.
CBDC in the Caribbean Region
Once completed, the Jamaica Digital Currency will become the third such project in the Caribbean Sea region. The Bahamas launched its sand dollar in 2020, while DCash (introduced in 2021) is the CBDC of the following countries: Antigua and Barbuda, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines.
Earlier this month, the Jamaican government said it would spread awareness and promote the employment of Jam-Dex by airdropping $16 (equivalent to 2500 Jamaican dollars) to the first 100,000 citizens who set up a CBDC wallet after April 1.
Dr. Nigel Clarke – Finance Minister – said that the main objective of the initiative is to encourage local people to use the product as an alternative to transacting. He said that the government wants to encourage businesses to create wallets and incorporate JAM-DEX in their day-to-day operations. Clarke estimates that the more frequently, the more shops and vendors accept CBDCs, the more widespread its use will be.
PrimeXBT Special Offer: Use this link to register and enter code POTATO50 to get up to $7,000 on your deposit.