OUTGOING Bank of Jamaica (BOJ) Governor Richard Byles says wider adoption of Jam-Dex remains one of the unfinished ambitions he would have liked to see realised before leaving office in August when his contract expires.

During his final press briefing on Tuesday, Byles said slow adoption of the digital currency remained one of the biggest frustrations of his tenure. But in what amounted to one of the few concrete timelines announced for the digital currency’s expansion, the BOJ revealed that Jamaica National Bank is expected to become the first deposit-taking institution (DTI) to retrofit its point-of-sale (POS) machines to facilitate jam-Dex transactions by July this year.

“One DTI has come to the gate and [is] working with the BOJ, and by July of this year the BOJ would have one DTI who would have retrofitted their point-of-sale device for Jam-Dex,” revealed Mario Griffiths, division chief of payment system and money services oversight.

The central bank has also received timelines and costings from several other DTIs, signalling some traction, though the pace of implementation remains slow. The slow roll-out reflects concerns Byles has repeatedly raised about the banking sector’s pace in upgrading digital payment infrastructure. Byles said the delayed transition was among the disappointments of his tenure as BOJ governor.

“I would count that as a disappointment that it has taken us years to get the banks to make that transition,” Byles said.

Although concerns were again raised about sectors of the economy that remain heavily cash dependent, Byles argued that Jamaica is capable of transitioning more transactions into the digital space once the supporting infrastructure is established. Pointing to countries such as Brazil, Byles said roughly 70 per cent of smaller transactions are now completed digitally, and that Jamaica is similarly positioned given the widespread use of smartphones.

“Jam-Dex is phone-based. It’s just that when you go to a merchant that has a POS machine that doesn’t use a phone, then you have to retrofit that POS machine, but from person to person, from person to small business, you can use Jam-Dex, and I think many Jamaicans will adopt that,” he stated.

The central bank has offered to cover half the cost of retrofitting POS machines in an effort to accelerate adoption, noting that many of the devices already require technological upgrades. The BOJ, however, did not outline what that cost would be. Despite that offer, Byles acknowledged that banks continue to face competing technology demands and implementation costs, placing Jam-Dex among several costly priorities institutions are balancing. Still, he maintained that the transition has taken longer than expected. Byles further argued that increased digital adoption could help ease some of the reputational issues commercial banks face regarding cash access and transactions.

Beyond Jam-Dex, Byles used the briefing to reflect on the wider achievements and challenges of his nearly seven-year tenure at the central bank. Tuesday’s briefing marked his final official engagement with the media before demitting office, ending a tenure that began on 19 August 2019.

“It has been my pleasure to serve the country at the Bank of Jamaica,” Byles said in response to commendations from journalists.

Reflecting on his time at the central bank, he described the transition of the BOJ into an independent institution as one of the defining accomplishments of his tenure.

“Leading the BOJ as an independent central bank has been a profound experience. That changed in 2022, and all of our operational tasks and activities became independent of Government at that time, so it’s been quite an experience to run the central bank in Jamaica for the first time in an independent fashion,” he said. “I would say that having done that for nearly five years is a major accomplishment.”

Byles’ tenure spanned several major global and domestic disruptions, including the COVID-19 pandemic, the post-pandemic inflation surge, supply chain disruptions, the Russia-Ukraine war, Middle East tensions and Hurricane Melissa. Despite the challenges, Byles credited the central bank’s staff for helping the institution navigate periods of uncertainty.

“At the bank we have a tremendous staff, and no matter what crisis is happening out there, they are heads down, doing the work, and I am forever grateful for the quality of support they have provided me over the years,” he said.

During his tenure, Jamaica also strengthened its inflation-targeting framework under an independent monetary policy regime, maintaining a target range of 4 to 6 per cent, although inflation temporarily breached that band during the global inflation spike following the pandemic. Despite his disappointment over the pace of Jam-Dex adoption, Byles said he leaves the institution satisfied with his tenure.

“I have had a good tenure at the bank and made friends that I am sure will continue after I leave,” said Byles.

Outgoing BOJ Governor Richard Byles says Jam-Dex adoption remains one of the unfinished ambitions of his tenure. (Photo: Rudranath Fraser)

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The Bank of Jamaica building in downtown Kingston. BOJ Governor Richard Byles has expressed frustration with delays in expanding JAM-DEX payment acceptance across Jamaica’s retail system.