CHANGE is often met with scepticism and fear, especially when it comes to anything having to do with money. Recently, Jamaica introduced new polymer banknotes, a move that has been met with apprehension and some resistance among sections of the population. Jamaica Observer journalist Codie-Ann Barrett has detailed in an excellent article (which you can read here) how many ordinary Jamaicans have responded to the new Bank of Jamaica banknotes, many expressing confusion as to the reasons for the change, as well as frustration at their tactile quality (notably their tendency to stick together, leading to unintended losses for vendors). It should be noted that many Australians likewise expressed dismay when their country fully adopted polymer notes in 1996, something echoed in 2016 when the Bank of England started issuing these notes in the UK.

But the new notes are a significant improvement on those of the past. The primary reason for their introduction is the advanced security features they offer. Polymer notes are practically impossible to counterfeit for all but the most sophisticated criminal syndicates, and thus the losses to our economy from such fraud are eliminated. They also have a significantly longer lifespan compared to paper banknotes (2.5-4 times longer), resulting in long-term cost savings. Furthermore, as noted above, many countries — including Australia, Canada, the UK, and Singapore — have successfully adopted polymer banknotes, showing that people do eventually get used to them. Granted, the new notes have a notably different ‘feel’ to the banknotes we’re all used to, but that’s to be expected. No doubt our forebears found the notion of paper money a bit strange when this was first introduced.

If we can stomach the new banknotes then even better is in store for our country. We live in a digital age when technological advancements are transforming every aspect of our lives. Digital forms of payment are gradually replacing the traditional concept of physical cash. Embracing this change is not a matter of choice but necessary if Jamaica wishes to keep pace with global financial developments. The resistance to polymer is, I would suggest, indicative of a more general attitude of stubbornness and resistance toward changes to our financial system more generally — something that we’ll need to confront in a world defined by rapid advances in financial technology. I would urge my compatriots to recognise that change is an inevitable part of progress in these matters.

Digital currencies such as cryptocurrencies or central bank digital currencies (CBDCs) have gained worldwide momentum. CBDCs are fully digital forms of a country’s fiat currency, and are designed to ensure greater security and efficiency of transactions. Countries around the world, including the likes of China, the United States, as well as several European countries including the United Kingdom, are actively exploring and implementing digital currencies. Jamaica has been something of an innovator in this field, I’m proud to say, with our own national CBDC Jam-Dex implemented last year. Embracing digital currency provides numerous benefits such as enhanced security, increased efficiency, and greater financial inclusion.

However, adoption of Jam-Dex has been slower than hoped, with the Bank of Jamaica noting ‘paucity’ in the uptake of CBDC and larger businesses “yet to come on board”. CBDCs work a bit like a social networking platform in that the value of the service comes from its universality. Just as no one would join a social network with few members, likewise consumers will be unwilling to adopt a new digital payment method that businesses are not equipped to accept.

This resistance must be challenged. Adopting digital currencies streamlines financial transactions, reducing the need for physical cash handling, counting, and transportation. Digital payments can be completed instantly, enabling faster and more efficient commerce. The risk is being left behind in a global economy increasingly dominated by new forms of internationally integrated financial services.

Embracing digital currency is a logical step forward for Jamaica, aligning the nation with global financial developments and reaping its numerous benefits. Enhanced security, increased efficiency, and greater financial inclusion are just a few of the advantages digital currency brings. Jamaicans must learn to exhibit a bold new attitude, embracing change and innovation. The costs of being left behind are too great.

Varun Baker, founder and CEO at Farm Credibly, began his journey 10 years ago, working relentlessly to combat crop and livestock theft on Jamaican farms. Through intimate encounters with farmers and understanding their issues, he received vital insights that have inspired his work at Farm Credibly, an agritech start-up offering simplified access to financial services to underbanked farmers in Jamaica.

Farm Credibly, founded in Kingston, is revolutionising agriculture through technology and impact investment, ensuring a sustainable future for farmers and their communities.