Jamaica became the first in the world to legalize CBDC

Central bank digital currency Jam-Dex will be launched by the end of June

09.06.2022 - 10:55

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What’s new? The Bank of Jamaica has recognized central bank digital currency (CBDC) Jam-Dex as legal tender. Once launched by the end of June, the asset will be used on a par with fiat currency. Jamaica has become the first country in the world to legalize CBDC. This is reported by Blockworks.

News on the Blockworks website

What else is known about Jam-Dex? Jamaica’s senate has authorized the Central Bank to issue its CBDC called Jam-Dex (Jamaica Digital Exchange). According to Bank Governor Richard Byles, a digital Jamaican dollar will offer a more secure and convenient alternative to physical notes and coins. In addition, it can be used without a bank account.

According to the local media reports, JMMB Group, a financial institution, will take on the implementation of the CBDC across the country. The company will soon launch points of sale and e-commerce, as well as develop new payment solutions for Jam-Dex.

In January, following the successful completion of a pilot test of CBDC, Jamaican Prime Minister Andrew Holness noted that the majority of the country’s residents would quickly adopt the digital currency and that the number of users would exceed 70% within five years.

In March, Holness announced that the first 100 000 citizens to use Jam-Dex would each receive 16 Jamaican dollars in their wallets. According to the Jamaica Observer, about 17% of the population does not use banks. This action should encourage low- and middle-income citizens to join the national banking system.

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