Jamaica will give Ja $2,500 which is approximately US $16 in free money to the first 100,000 people who use Jam-Dex’s digital currency.
A Facebook post Thursday by Andrew Holness stated that those who activate digital wallets following the currency’s launch will be eligible for a “incentive” worth 2,500 Jamaican dollars.
The Caribbean has been a leader in issuing central bank digital currency, or CBDCs. CBDCs, which are digital versions or fiat currencies, are not like Bitcoin, Dogecoin, and other popular cryptocurrency. In October 2020, the Sand Dollar was launched by the Bahamas as the first CBDC in the world. In March 2021, DCash was launched by the Eastern Caribbean Central Bank.
Despite the pandemic and technical problems, adoption has been slow.
This week’s speech at Jamaica’s legislature saw Nigel Clarke, Finance Minister, acknowledge that Jam-Dex’s success is dependent on its real-world utility. He stated that the digital currency will become more widely accepted by vendors, bars, and corner shops if more people accept it.
The Jam-Dex, short for Jamaica Digital Exchange, was piloted by Jamaica’s central banking throughout 2021. It is expected to launch it next month.
Jam-Dex digital wallets will automatically be available to Jamaicans who have bank accounts. Those without accounts will have to go through a simplified “know Your Customer” process is a fraud prevention practice that regulators across the globe have mandated.
In the crypto world, payment-for-use is a common practice. El Salvador legalized Bitcoin last year and gave $30 to anyone who activated a Chivo digital wallet.
Take the Jamaica Quiz. Most People Only Get 7 out of 10
However, Jamaica’s offer was not universally accepted. Online commentators accused the government of offering “bribes,” to help Jam-Dex within minutes of the announcement by the prime minister.
One Facebook commentator stated that “they know people are desperate” and took advantage of the desperation they created. “People should run in the opposite direction.”
Jamsixty tries to keep you informed with up to date finance happenings as we approach Jamaica’s 60th Independence anniversary. What is your opinion on this initiative?
You May Also Like
