Early Investors Will Receive Jam-Dex CBDC From The Jamaican Central Bank

• Around 17% of the Jamaican population does not have access to banking services. Although people on social media speculate regarding governmental motives, the Observer reminds out that being unbanked would be both expensive and time-consuming among poorer Jamaicans.

• Several other countries are starting to experiment with CBDC implementation, with the Philippines announcing plans to establish Project CBDCPh as recently as Tuesday

• In order to encourage wider adoption, the first 100,000 Jamaican individuals who use the country’s new central bank digital currency (CBDC), known as Jam-Dex, would receive a free $16 payment.

Citizens using crypto wallets will get a $16 deposit from the Jamaica Digital Exchange, Jamaica’s soon-to-be-released CBDC, to assist raise knowledge and usage. In order to encourage wider adoption, the first 100,000 Jamaican individuals who use the country’s new central bank digital currency (CBDC), known as Jam-Dex, would receive a free $16 payment.

Embracing A Digital Future

Jamaican Prime Minister Andrew Holness made the announcement via Facebook early Thursday. Several Facebook users praised Holness for entering the digital age, whereas others criticized the Jamaican government’s goals, accused Holness of seeking to entice folks into the federal banking system. According to the Jamaica Observer, around 17% of the Jamaican population does not have access to banking services. Although people on social media speculate regarding governmental motives, the Observer reminds out that being unbanked would be both expensive and time-consuming among poorer Jamaicans.

It is intended that, among other things, this new payment incentive will entice low- and middle-income residents to join the national banking system. The announcement comes as the Bank of Jamaica (BoJ) completed an eight-month trial program for Jam-Dex on December 31 of last year, and a national rollout is scheduled as soon as next month. As per the Bank of Jamaica, most Jamaicans having which was before bank accounts would be qualified for Jam-Dex virtual wallets instantly. In an address to the country’s House of Representatives on Wednesday, Jamaican Finance Minister Nigel Clarke stated that for Jam-Dex to be effective, it must be widely adopted by citizens and businesses.

As per a report published either by the Bank of Jamaica on Feb. 17, the proposed virtual currency would be called the Jamaica Virtual Exchange, or Jam-Dex in brief. It will have its own logo and the tagline No cash, no problem. The Bank of Japan plans to introduce new money as soon as the next month. For both technological and aesthetic grounds, the name Jam-Dex was received with a lot of backlashes. While the Jam-Dex may be referring to the fact that currencies are exchanged, as well as the fact that it is both digital and Jamaican, the terminology has caused a lot of confusion.

Jam-Dex is simply a digital currency, whereas DEX in crypto parlance refers to a decentralized exchange, a place where cryptocurrencies are bought and sold. Users on Twitter were quick to point out the obvious misnomer in the currency’s namesake, as Jam-Dex is simply a digital currency. Despite the fact that China was one of the first countries to announce the development of its CBDC, the digital yuan, Caribbean countries have quickly risen to the top in terms of CBDC adoption and proliferation. The Eastern Caribbean Central Bank (ECCB) has launched DCash, its own CBDC, in eight member countries.

Project CBDCPh

The central bank-backed digital currency DCash, on the other hand, has been hampered by a meltdown on Jan. 14 that knocked it offline for over two months. The ECCB didn’t announce that DCash was completely working again until Wednesday, citing an expiring certificate on the Hyperledger Fabric, which holds the DCash ledger, as the cause of the breakdown.

Several other countries are starting to experiment with CBDC implementation, with the Philippines announcing plans to establish Project CBDCPh as recently as Tuesday. Iran, Kenya, and the European Union are among the most recent countries to consider implementing CBDC in some form.