According to a report, the central bank of Jamaica has legalized its CBDC, the Jam-Dex. This makes it the first nation to take such a step. The move of the central bank aims to provide another alternative for its economy.
Jamaican Senate Legalizes Jam-Dex
In Jamaica, the Senate has given the central bank authority to issue the Jamaica Digital Exchange (Jam-Dex). According to Richard Byles, the central bank’s Governor, it will be launched this month.
Speaking to Blockworks, Byles noted that the Jam-Dex provides a convenient and secure alternative to fiat. Also, citizens can use it without having an account with a bank.
In addition, the country has been running a pilot test on the CDBC since August. Although the central bank noted it would be released in Q1 2022, it moved the date to Q2.
According to Jonathan Dharmapalan, CEO of eCurrency, a technology provider for CBDC,
“Jamaican lawmaker have helped to move the notion of a digital Dollar in Jamaica. Citizens can use the digital Dollar to settle debts. In addition, it is also a means of exchange.”
Dharmapalan added that countries must understand that their fiat currency can become digital. He believes that this new technology will allow for quick and easy transactions. Also, people don’t have to be physically present to make transactions.
As per the Jamaican Observer, a financial organization, JMMB will launch several new products. The products include new payment options, e-commerce, and point-of-sale. The new products aim to increase the adoption rate of Jam-Dex.
The media outlet also noted that the National Commercial Bank (NCB) supports the CBDC. It does this via its Lynk wallet, where users can buy and sell the CBDC.
CBDC Drive Globally
Worldwide, CDBC adoption is increasing. Several nations are either developing or researching a potential CBDC, wholesale or retail.
As per the Atlantic Council tracker for CBDC, 105 countries are working on a CBDC. This represents about 95% of worldwide GDP.
Also, the statistics site reports that about ten nations have issued a CDBC. Examples include Nigeria with its eNaira and the Sand Dollar by the Bahamas. However, the first among them to legalize CDBC as legal tender in Jamaica.
Furthermore, the ongoing pilot test by China for its digital Yuan will continue next year. The country added Guangzhou, Xiamen, Fuzhou, Tianjin, Chongqing, and Zhejiang to the pilot test in April.
Meanwhile, countries like the United Kingdom and the United States remain on the fence concerning CBDC. Also, central bankers and policymakers are very slow on the issue of a digital Dollar.
Unfortunately, some officials believe a digital Dollar is a bad idea. They stated that this would grant the Fed more control over the finances of people.