Jamaica Becomes the First Nation to Legally Tender a CBDC
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Jamaica has become the first country to issue a legal tender for the Caribbean Development Bank (CDB). In a first for a nation, the central bank of Jamaica has formally accepted the “Jam-Dex” central bank digital currency as legal tender.
CBDC is a new form of payment that has been approved by the Bank of Jamaica (BoJ). Jam-Dex (Jamaican Digital Exchange) is a name for a cryptocurrency issued by the country’s central bank. In the coming weeks, the Jam-Dex will be formally launched for domestic usage, according to Bank of Jamaica Governor Richard Byles.
According to Byles, the digital Jamaican dollar “offers a more secure, easy alternative to traditional notes and coins.”
Since August of last year, the Jam-Dex has been in a pilot testing phase. Delays have forced BeInCrypto to postpone the rollout of the service until the second quarter of this year.
New ways to pay have emerged
In a statement, eCurrency CEO Jonathan Dharmapalan said: “Legislators in Jamaica have all now unanimously advanced a digital dollar ahead in Jamaica. This may be used to satisfy any Jamaican debt. It serves as a means of payment. It serves as a means of exchange.
Before adding: “Because it is digital, you don’t have to be in the same area at the same time to perform a transaction…,” he said that governments should start accepting digital currency. A very, very potent weapon.”
Financial services company the JMMB Group plans to develop a variety of new products, including POS, e-commerce, and payment solutions to help promote the adoption of the Jam-Dex, according to the Jamaica Observer. National Commercial Bank (NCB) is also pushing the CBDC via its Lynk wallet, according to the source.
More than 95 percent of the world’s GDP is presently being researched or developed on a CBDC, according to the Atlantic Council’s CBDC tracker.
Although several countries, including Nigeria and the Bahamas with their “Sand Dollar,” have debuted CBDCs, Jamaica is the first to legitimise them as a form of currency.
Up until 2023, China plans to continue its digital yuan, e-CNY, or DCEP (digital currency/electronic payment) trials. In April, the pilot programme expanded to include Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, and six more cities in Zhejiang province.