The Bank of Jamaica said it is partnering with the local government to deepen the adoption of JamDex, the government’s digital currency, as a means of payment.
Speaking at the Fintech Islands Experience Summit, Novelette Panton, director of financial markets infrastructure development at the Bank of Jamaica, said that one of the reasons for the creation of the state stablecoin was to attract as many people as possible to the country’s financial system.
In 2021, the Central Bank of Jamaica launched an eight-month pilot program to test JamDex as part of the country’s digital transformation. And this year saw the launch of the digital Jamaican dollar with the help of the Lynk platform, through which merchants can transact with JamDex.
Panton said that by the end of September, there were 115,000 Jamaicans on Lynk and about 146,000 transactions. The top manager added that in addition to Lynk, other providers of mobile wallets are testing their products in the central bank’s regulatory sandbox.
“We have gone so far as to introduce the digital currency of the central bank among sellers. There is no point in launching it if people don’t know where to spend it,” Panton said.
However, a recent survey of local residents showed that more than 500,000 Jamaicans still do not have access to the country’s financial sector. Therefore, the next task for the Bank of Jamaica will be the inclusion of JamDex in social protection programs.
CBDC can be used for social benefits, including school and housing benefits. To do this, the Bank of Jamaica works with the Department of Labor and Social Security, the Department of Rural Development and local governments.
The government is improving the financial literacy of Jamaican citizens by educating them about the differences between JamDex and cryptocurrencies, as well as the security of the government’s stablecoin.
Panton said the government plans to implement programs under which people will be able to receive part of their wages in the digital Jamaican dollar as early as December. Now the situation is such that people receive a salary in cash and spend it without interacting with other players in the financial sector.
In order for JamDex to be fully included in the country’s financial system, people need to be convinced to save, invest and make insurance premiums in this digital currency. Wider adoption requires the involvement of utilities and telecommunications service providers, Panton concluded.
Recall that in March, Jamaican authorities distributed digital Jamaican dollars in the amount of $16 to the first 100,000 citizens who installed wallets for JamDex.
Source: Bits
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