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Jamaica to Release its First CBDC, Jam-Dex

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Jamaica to Release its First CBDC, Jam-Dex
12 Mar 2022
6 min read

News Synopsis

The first 100,000 Jamaicans using the country's new Central Bank Digital Currency (CBDC), known as Jam-Dex, will receive a $ 16 free payment in the hope of widespread adoption.

The prime minister of Jamaica, Andrew Holness announced the news in a Facebook post. The post received a mixed response from users, where some praised Holness for embracing a digital future, others expressed concern about the motivations of the government, accusing the prime minister of trying to bribe citizens into the federal banking system.

According to Jamaica Observers, about 17% of Jamaica's population is currently out of the bank. Observers point out that not having a bank account can be costly and time-consuming for poor Jamaicans. This new payment incentive is expected to encourage low- and middle-income earners to participate in the banking system, among other things.

Jamaica's Finance Minister Nigel Clark said in a speech to the  House of Representatives that Jam-Dex needs to be widely accepted by citizens and businesses in order for it to prosper.

The name Jam-Dex has received a lot of criticism for both technical and aesthetic reasons. Jam-Dex may refer to the fact that currencies are "exchanged" and are both "digital" and "Jamaican", but the term has caused a lot of confusion for many.