Ricardo Distant, head of digital transformation at JN Bank, believes that the launch of the digital Jamaican dollar will bring major improvements to Jamaica’s financial sector.
In conversation with local media, Ricardo Dystant noted Benefits of the Central Bank of Jamaica Digital Currency (JAM-DEX). He believes that its launch will be a “turning point” in the country’s financial industry, as it will reduce barriers to public access to banking services, reduce transaction costs, and increase the speed of settlements and payments.
He cited Jamaica’s National Financial Inclusion Strategy data showing that 78% of Jamaicans have a bank account, but most of these people rarely use it. 23% of the local population do not deposit or withdraw funds from bank accounts for 12 months. The level of interaction of the local population with banks is 11% lower than in other countries of Latin America and the Caribbean.
“JAM-DEX will be a game changer for Jamaicans by empowering thousands of unbanked people. The digital currency of the central bank will maintain justice in society. A person in any remote area of the country will be able to easily and seamlessly make banking transactions and pay for goods with the click of a button on their mobile phone. Instead of going to the corner store with cash, you can simply order groceries by transferring money to the seller’s digital wallet,” Distant said.
He also noted that the use of government stablecoins would save the budget of the average person. Distant explained that the Bank of Jamaica spends significant amounts in printing cash. Moving money to banks and other sectors of the economy is also expensive, and these costs are borne not only by the central bank, but also by other financial institutions and commercial structures. Some of these costs are passed on to ordinary consumers through pricing. According to the specialist, the digital Jamaican dollar will eliminate some of these costs, and this will positively affect ordinary citizens.
Another important advantage of the Bank of Jamaica digital currency is interoperability with other wallets. For example, a JN Bank wallet user will be able to transfer JAM-DEX to wallets of other commercial banks, Distant added. He believes that digital currencies of central banks will not replace cash, but will only be a great addition to the banking industry, expanding existing payment methods.
This month, the leadership of the Central Bank of Jamaica announced that in order to launch JAM-DEX, it is necessary to make appropriate amendments to the legislation on the regulation of digital assets.
Source: Bits
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