Citizens having crypto wallets get a $16 deposit from the “Jamaica Digital Exchange”. Jamaica’s soon-to-be-released CBDC, to help raise knowledge and usage.
The country’s new central bank digital currency (CBDC), known as Jam-Dex, will be used by the first 100,000 Jamaican people. In order to encourage wider adoption, they will offer a free $16 payment.
On Thursday, Jamaican Prime Minister Andrew Holness revealed the news in a Facebook post. Some Facebook users hailed Holness for embracing a digital future, while others criticized him.
Others, on the other hand, expressed reservations about the Jamaican government’s objectives. They charged Holness with attempting to bribe residents into using the federal banking system.
According to the Jamaica Observer, around 17% of the Jamaican population does not have access to banking services. Users on social media speculate on government motivations. Furthermore, the Observer points out that for poorer Jamaicans, remaining unbanked is both costly and time-consuming. Among other things, this new payment incentive will encourage poor and middle-income persons to participate in the national banking system.
Completion of Jam-Dex Pilot Program
The news comes after the Bank of Jamaica (BoJ) completed an eight-month trial program for Jam-Dex on December 31 of last year. By the end of next month, it should be fully operating. All Jamaicans with pre-existing bank accounts will be immediately eligible for Jam-Dex digital wallets, according to the BoJ.
Nigel Clarke is the Jamaican Finance Minister. He stated that for Jam-Dex to take effect, it must be widely adopted by citizens and businesses.
Jam-Dex: A CBDC or DEX?
The new digital currency will name as Jamaica Digital Exchange, or Jam-Dex for short, according to a paper released by the Bank of Jamaica on February 17. It has its own logo as well as the motto “no cash, no problem”. The Bank of Jamaica anticipates launching the currency as early as next month.
For both technological and aesthetic grounds, the name “Jam-Dex” received with a lot of backlash. The Jam-Dex could refer to the fact that monies are “exchanged,” as well as the fact that it is both “digital” and “Jamaican”. For many people, the language caused a lot of confusion.
Twitter users were eager to point out the obvious grammatical error in the currency’s name. Jam-Dex is nothing more than digital money. In the crypto world, “DEX” stands for decentralized exchange where coins can be bought and sold.
CBDC’s Development in Other Countries
China was one of the first countries to announce its CBDC, or “digital yuan,” development. The Caribbean has quickly risen to the forefront of CBDC adoption and proliferation. The Eastern Caribbean Central Bank (ECCB) has launched its own CBDC, DCash, in eight of its member countries.
The adoption of DCash, on the other hand, has been stymied. This came after the central bank-backed digital currency went offline for nearly two months after a crash on Jan. 14.
The ECCB didn’t announce that DCash was fully operational again until March 9th. According to them, the crash caused an “expiring certificate” on the Hyperledger Fabric, which hosts the DCash ledger.
CBDCs, experimented with in a number of other nations throughout the world. As recently as March 8, the Philippines announced plans to start Project CBDCPh. Iran, Kenya, and the European Union are among the newest countries to consider implementing CBDC in some form.