The Bank of Jamaica has confirmed it will expand its agreement with eCurrency. The extension is a step closer to its launch. E-Currency is a technical support provider for Central Bank’s digital currency (CBDC).
Jamaica And E-Currency
In August 2021, Jamaica and eCurrency signed a five-month agreement. The goal of the agreement was to research the JAM-DEX retail CBDC trial. However, work on the project started in April. Rumors of a large-scale deployment led to the agreement to have an ongoing relationship with the Bank.
Natalie Haynes, the Deputy Governor, said that The Bank of Jamaica is happy to collaborate with eCurrency. The two are collaborating on a countrywide launch of JAM-DEX for the people of Jamaica. She added that JAM-DEX would fundamentally alter the course of the nation’s digital transformation. She further said all citizens, whether banked or partially banked, will participate in the legal and financial system thanks to JAM-DEX. This way, citizens will get access to additional financial products.
How Ecurrency Will Change Jamaica’s Financial Sector
The alliance, according to the CEO, has the potential to boost the nation’s economy. He said the agreement would solidify Jamaica’s position as a pioneer in CBDC growth.
Jamaica was one of the first nations to grant legal tender status to the digital representations of their federal money. The Bank of Jamaica Act was amended to give the central bank some authority. They can now print, circulate, and exchange JAM-DEX as the CBDC’s exclusive issuer. Commercial banks can provide JAM-DEX to the public under the new law. The central bank will deal with the issue of digital money.
Dharmapalan added, “We are proud to be the Bank of Jamaica CBDC’s partner. Jamaica is setting an example for the rest of the world by releasing a true CBDC. CBDC is a digitized bearing instrument circulated together with its notes and coins.
Obstacles Are Making It Difficult For JAM-DEX To Launch.
The Bank of Jamaica has called attention to various concerns. The CBDC’s acceptance can be slow due to these issues before its launch in December 2023. The banking regulator disclosed this at a meeting of the Public Administration and Appropriations Committee. The biggest problem is the need for more vendors.
According to Fitz Jackson, a parliamentarian, the benefits are obvious. But the country will only be able to capitalize on any advantages if many people embrace it. So, it would be a viable idea that is unlikely to materialize.
Only the Commercial Bank is functional for the CBDC deployment. The Jamaica National Bank is working hard to create a mobile wallet to help the CBDC.