Jamaica is a crypto-friendly country, and its government has accepted and is trying to include digital currency in the broad scheme of things. 

The country has a new central bank digital currency (CBDC) called Jam-Dex, and as an incentive to use this currency, the Jamaican government has said that it will give 2500 Jamaican dollars (16 USD) to the first 100,000 citizens to make use of it. This is a way to promote the new development and advocate its uses.

This major move was announced in a press release published after Jamaica unveiled the currency sometime in February. The unveiling was a pretty big deal, and there was something of a nationwide contest to design the logo, tagline, and name of the proposed currency. The name was met with loads of criticisms for various reasons. Twitter users reckon that the name is both aesthetically and technically unappealing. 

The news of this incentive to give the first 100,000 JAM-DEX users $16 was first announced by the prime minister of Jamaica, Andrew Holness, via a post on Facebook. The post was received with varying responses, with some users impressed by the decision and the fact that the country wants to embrace and adopt a digital future. While others expressed some displeasure at the decision, stating that it seemed like Holness was trying to bribe the citizens to use the federal banking system.

Jamaican Minister of Finance Nigel Clarke has said that anyone that has an existing bank account can obtain a JAM-DEX wallet automatically. He also added that the next step of action and a significant focus would be passing legislation that recognizes the JAM-DEX token as a legal tender that can only be issued by the Bank of Jamaica.

The Future of Banking: CBDC

CBDC is a growing trend in the financial sector in the world as banks try to evolve year by year, delving into digital currencies. CBDC operates solely on blockchain technology, and it is a huge link between crypto and traditional finance. 

Governments in various countries have realized the usefulness and importance of digital currencies in transactions. These currencies are becoming the preferred payment methods, especially during deals where the sum to be exchanged is high.

Leading countries like China and The USA have shown interest in digital currencies linked to financial institutions too. In fact, China was one of the first major economies in this world to make its digital currency. The country introduced the digital yuan during this year’s winter Olympics.

Some countries in the Caribbean are also involved in the expansion of CBDCs, and they have their active currencies.

Jamaica choosing to adopt the digital currency method of transaction too is a very positive step for them. It is an excellent step towards evolution and will yield fruits in the long run. 

Many other countries worldwide are beginning to look into the adoption and implementation of CBDCs.