Jamaica’s Central Digital Bank Currency JAM-DEX Explained
Over the past two years, cryptocurrencies have gone mainstream. In fact, we have seen many retail investors purchase their first cryptocurrency in 2020. In 2021, institutional investors started buying into major crypto coins such as Bitcoin. Today, nations are getting into the crypto game with their own central bank digital currencies (CBDC).
Leading the way is the Caribbean island nation of Jamaica which has recently introduced its own CBDC. Here, we take a look at the Jamaica CBDC and its impact on the nation’s future.
The Jamaica CBDC Has Been Active for Over a Year
The Jamaican CBDC was launched in March of 2021 as a pilot program by the Bank of Jamaica. Due to some technical glitches and the pandemic, the adoption rate has been slow. However, the Jamaican government is determined to make the Jamaica CBDC the next generation in the country’s currency. So far, the Bank of Jamaica has minted $250 million Jamaica dollars which equates to about $1.5 million U.S dollars. The island nation has set a goal of replacing 5% of its paper money with digital currency.
Following in the Footsteps of Other East Caribbean Nations
Jamaica’s rollout of its own CBDC follows in the footsteps of other East Caribbean nations which have created their own digital currency known as DCash. These nations want to make sure that their citizens are not left out in the next stage of financial innovation. Currently, the nations of Antigua and Barbuda, Grenada, Saint Kitts and Nevis, Saint Lucia, Dominica, and Montserrat have adopted DCash. However, the Bahamas is the first Caribbean nation to create its own digital currency.
Citizens Have the Chance to Recieve Free Digital Currency from Jamaica’s Central Bank
A large adoption rate is going to be critical for the success of the Jamaica CBDC. Therefore, the government is offering $2500 Jamaican dollars in free digital currency to the first 100,000 Jamaican citizens who activate their digital wallets. At current exchange rates, the free $2,500 in Jamaican digital dollars translates to about $15 US dollars. My code for free J$250 at sign up is 07C26F
What are the Major Advantages of a Digital Currency?
There are a number of reasons why governments would like to bring digital currencies into circulation. First digital currencies are easier to create than paper currencies. Digital currencies are also almost impossible to counterfeit. Additionally, digital currency is easier to track and control. For the end-user, digital currency is easier to move from one account to another. This is especially true if the end-user wants to remit money from one nation to another.
Full Rollout of the Jamaica CBDC Expected in 2022
With a full rollout expected in the spring of 2022, the Bank of Jamaica will push for widespread adoption of the Jamaica CBDC. The plan for the rollout includes partnerships with major banks and retailers as well as a national marketing campaign. Finally, all government welfare programs will be paid in CBDC.
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