JAMAICA’S central bank digital currency (CBDC), Jam-Dex, remains mired in stagnation two years after its high-profile roll-out, with circulation stagnating at just 0.09 per cent of the country’s total money supply as commercial banks resist the profit-free model and businesses balk at technical hurdles, parliamentary debates and central bank data reveal.

The update came in Parliament’s Standing Finance Committee meeting on Thursday as Finance Minister Fayval Williams responded to queries from Julian Robinson, Opposition spokesman on finance, who was seeking answers on the progress of the roll-out of Jam-Dex.

“BOJ introduced Jam-Dex as an alternative currency; I don’t know if it is still being pursued by the Government of Jamaica. If you could give me an update as to whether we are going that route, whether we have stopped, whether we have paused, whether we are pursuing an alternative, if you can give me an update on that,” Robinson asked.

“Member, as far as I know we are still pursuing it,” Williams replied.

“Obviously it will take some resources to onboard persons, to onboard financial institutions, and to onboard businesses. The last time I heard the governor speak on this, onboarding the businesses was going a little bit slower than anticipated. But I know that they have identified some of the issues, and they have been working and will continue to work on ensuring that there is smooth onboarding of businesses — because that’s a key component of being able to see widespread adoption of the Jam-Dex,” Williams continued.

The digital currency, launched in 2022, was touted by former Finance Minister Nigel Clarke as being one way to reduce transaction fees and modernise Jamaica’s financial system. Yet, only a mere $258.4 million in Jam-Dex is in circulation as of January 2025 — a fraction of the $286-billion total currency supply — despite a $250-million Government incentive programme in 2022 targeting 100,000 users, with each getting $2,500. Bank of Jamaica (BOJ) had projected in 2021 that digital transactions would eclipse cash within a decade, but Jam-Dex’s sluggish uptake now casts doubt on that timeline.

Central to the impasse is resistance from commercial banks, which have shown “reluctance to embrace” Jam-Dex because they “can’t attach a fee to it”, BOJ Governor Richard Byles acknowledged in 2022. National Commercial Bank (NCB), the sole initial wallet provider, has scaled back promotions, while four other planned financial institutions have yet to fully onboard.

“The outlay required by financial institutions is exorbitant,” Robinson told Parliament this week, noting NCB has seemingly retreated from the project, and declaring the initiative “dead” amid stalled merchant adoption. Williams countered that Jam-Dex remains “alive and well”, blaming delays on businesses rejecting dual-payment systems. “They want integration into existing point-of-sale machines,” she said.

“So, member, it’s not just the financial sector that’s required to bring people on board — that’s just one component of it. The other very significant component is getting businesses to use it. Again, my understanding is that businesses would prefer for Jam-Dex to be able to be facilitated by their existing point-of-sale machines, so there is some work that would need to be done to have that kind of integration into the one point-of-sale machine that businesses use. They don’t want to use two different machines. So, that’s where the work is being done right now to get that kind of seamless integration of Jam-Dex into point-of-sales machines.”

Bank of Jamaica did not respond to queries about Jam-Dex, and NCB promised responses, though none were forthcoming up to press time.

The stalemate undermines the Government’s 2022 pledge that Jam-Dex would curb banking fees, which average $150 per transaction — a burden for Jamaica’s unbanked 17 per cent.

BOJ Deputy Governor Natalie Haynes had forecast “widespread acceptance” by 2027 but with just 0.09 per cent penetration, even proponents admit challenges.

“The Jam-Dex is a project that is still very much alive and well. We have to solve the issue on the merchant side in terms of the merchant being able to accept Jam-Dex in a seamless way. That is being worked on currently, and that’s what I could say to where that is and the likely impact that Jam-Dex would have on fees once Jam-Dex is up and fully functional and working.”

The minister was asked to give a full update on the issue when she takes the stand for the beginning of the budget debate on March 11.

Minister of Finance Fayval Williams at Parliament’s Standing Finance Committee meeting on Thursday March 6, 2025. At right is Financial Secretary Darlene Morrison. (Photo: Garfield Robinson)