Jamaica: Jamaica finalising steps to debut its CBDC

The Jamaican government has stated that it is finalizing preparations for the launch of Jam-Dex, the country’s central bank digital currency.

The Bank of Jamaica revealed this week in a press statement that it has already chosen the name, visual image, tagline, and logo for the CBDC, which will be launched later this year. Following a public competition the bank organized, the whole branding of the new digital money was decided.

According to the announcement, the name Jam-Dex is derived from Jamaican Digital Exchange, with the tagline “no cash, no problem” proposed by Ms. Ashley Payne. The prize winners for each item were announced, with Ms. Payne “receiving total of J$600,000 (J$350,000 for the name and J$250,000 for the tagline) in regular currency, plus a combined total of J$50,000 in CBDC.”

What you should know about CBDCs

• Like Nigeria’s eNaira many other countries including Jamaica and Kenya have proposed launching their own CBDC as an alternative to the widely condemned cryptocurrencies. Many central banks have attacked crypto assets, but are firmly behind a CBDC, which is thought to be more stable.
• The government of Jamaica has decided to consider a CBDC, making it one of the Caribbean countries to do so. Only the Eastern Caribbean and the Bahamas have started their CBDCs so far.
• In October 2020, the Bahamas debuted the Sand Dollar, the region’s first CBDC. Five months later, the Organisation of Eastern Caribbean States launched Dcash, its own form of digital currency.
• Nigeria’s became one of the first countries in the world to introduce a Central Bank Digital Currency (CBDC) that is open to the entire public with the eNaira. Furthermore, the launch of eNaira served as an example to other African countries thinking of entering the blockchain space.
• The United States, which is largely projected to lead the CBDC field, is currently researching its viability. El Salvador, on the other hand, has taken a different strategy. Instead of developing its own digital currency, the Central American country has embraced Bitcoin wholeheartedly. When the government legalized Bitcoin for all forms of payments last year, it became the first country to accept it as legal tender.