Bank of Jamaica extends eCurrency contract
CENTRAL bank digital currency (CBDC) infrastructure support provider eCurrency indicates that the Bank of Jamaica has extended its contract ahead of a full-scale roll-out in December 2023.
The BOJ and eCurrency first entered into a five-month partnership to explore a retail CBDC pilot known as Jam-Dex in August 2021; project development started in April 2022. Amidst plans for full deployemnt the central bank has inked a long-term partnership with eCurrency.
The BOJ earlier disclosed in the Public Administration and Appropriations Committee (PAAC) that few merchants have embraced use of Jam-Dex.
At this time only the National Commercial Bank has signed up to deploy the CBDC but JN Bank is also developing a mobile wallet to support the CBDC.
Inspite of the slow take-up the central bank is pressing ahead. In eCurrency’s update, Deputy Governor Natalie Haynes was quoted as saying, “Bank of Jamaica is pleased to partner with eCurrency in the national roll-out of Jam-Dex to the Jamaican people.” She said, “Jam-Dex will be a game changer in the country’s digital transformation by enabling unbanked and under-banked citizens to be part of the formal financial system, thereby enabling access to other financial products.”
eCurrency CEO Jonathan Dharmapalan said the partnership could advance the financial sector in the country, stating that “the deal would cement Jamaica’s status as one of the leading countries in terms of CBDC development”.
Jamaica was among the first countries to launch a digital version of local currency, elevating this to legal tender.
Amendments to the Bank of Jamaica Act have granted powers to the central bank to be the sole issuer of the CBDC, with the ability to mint, distribute, and redeem Jam-Dex.
Under the revised law, commercial banks will be empowered to distribute Jam-Dex to the public while the central bank concerns itself with issuing the digital currency.
Dharmapalan said, “Jamaica is leading the world in issuing a true CBDC that is a digital bearer instrument distributed alongside its notes and coins.”
