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CBDC – Jamaica becomes first country to legalize centralized cryptocurrency

 


The Central Bank of Jamaica officially recognized the Central Bank Digital Currency (CBDC) “Jam-Dex” as legal tender.


Jamaica was the first country in the world to introduce a centralized cryptocurrency as legal tender. With the digital central bank currency, the government wants to offer an alternative in the cash-based economy of the country.


The Jamaican Senate reportedly authorized the country's central bank to issue the CBDC - known as the Jamaica Digital Exchange or Jam-Dex. According to Bank of Jamaica Governor Richard Byles, Jam-Dex will officially launch for domestic use later this month. Byles explained to Blockworks:


"The digital Jamaican dollar offers a safer and more convenient alternative to physical notes and coins and can be used without a bank account."


The digital Jamaican dollar has been in a pilot phase since August last year. BeInCrypto reported earlier this year that the centralized cryptocurrency should be launched in the first quarter of 2022 . However, delays in development meant that the launch was pushed back to the second quarter.


Jamaica-Dex: A “Very Powerful Cryptocurrency”

Some companies and institutions in the country are actively promoting the development of the new centralized cryptocurrency . The CBDC technology company eCurrency, for example, supports the current development. Jonathan Dharmapalan, the company's CEO, explains:


“Jamaica lawmakers have now unanimously approved the launch of a digital dollar in Jamaica. This can be used to pay off any debt in Jamaica. The (digital) Jamika dollar is the medium of exchange in the country. And it serves as the unit of account for Jamaica.”


It is also important that countries recognize that their money can be in digital form: “Because it is digital, you don't have to be in the same place at the same time to carry out a transaction... It's a very, very powerful tool. ”


According to the Jamaica Observer news magazine , the JMMB Group, a financial services company, plans to introduce a number of new products for the Jamaican dollar. These include, for example, point-of-sale solutions, e-commerce products and new payment solutions that are intended to facilitate the introduction of the Jam-Dex.


In addition, the National Commercial Bank (NCB) is also promoting the country's new cryptocurrency with the Lynk wallet , as the news magazine reports.

Will more countries adopt CBDCs?

According to the Atlantic Council CBDC Tracker , there are currently 105 countries that are researching or developing a CBDC, representing more than 95% of global GDP. According to the tracker, ten countries are already developing a CBDC. These include Nigeria, the Bahamas with their "Sand Dollar" and several Caribbean island states. Jamaica is the first country to legalize a CBDC as a means of payment.


The pilot projects for the digital yuan in China are planned to continue until 2023. Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen and six cities in Zhejiang Province entered the pilot program in April. The US is well behind other countries in developing its own central bank digital currency, as policymakers and the central bank are reluctant to push the development forward.


Many have already criticized the risks that such a cryptocurrency can entail. Banks and governments could abuse central bank digital currencies, gain far more control and use the technology to monitor and direct people's money flows.


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All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

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Comments

  1. TutsumiJune 10, 2022 at 6:36 AM

    The Bahamas already has theirs out as the first country. It's already been out for people to use for some time now.

    ReplyDelete

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