Jamaica becomes first country to make a CBDC Legal tender

[Wakate]

Jamaica’s central bank has officially recognized the “Jam-Dex” central bank digital currency (CBDC) as legal tender, becoming the first country to do so. The Bank of Jamaica (BoJ) has legalized its CBDC in a move to provide an alternative to its cash-based economy.



According to reports, the Jamaican senate has authorized the central bank to issue its CBDC, known as the Jamaica Digital Exchange, or Jam-Dex. According to Bank of Jamaica Governor Richard Byles, the Jam-Dex will officially launch for domestic use later this month. The digital Jamaican dollar offers a more secure, convenient alternative to physical notes and coins, and can be used without a bank account.

The Jam-Dex has been in a pilot testing phase since Aug last year and this year that it would be rolled out in Q1, but delays have pushed it into the second quarter. The CEO of CBDC technology provider eCurrency, Jonathan Dharmapalan, confirmed the move: “Legislators in Jamaica have all now unanimously moved a digital dollar forward in Jamaica. You can use this to settle any debt in Jamaica. It is the medium of exchange. It is the medium of account.”


https://www.warrenscoins.com/jamaica-becomes-the-first-nation-to-make-cbdc-a-legal-tender/

Global CBDC drive
According to Atlantic Council’s CBDC tracker, there are currently 105 countries, representing over 95% of global GDP researching or developing a CBDC. It also reports that 10 countries have actually launched a CBDC including Nigeria, the Bahamas with its “Sand Dollar’ and several Caribbean island nations, however, Jamaica is the first to legalize one as tender.

China’s digital yuan, e-CNY, or DCEP (digital currency/electronic payment) pilots are set to continue into 2023. Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, and six cities in Zhejiang province were added to the pilot program in April.

The United States is the laggard in this race with policymakers and central bankers dragging their feet on any development of a crypto greenback. Some believe a central bank digital dollar will give the Federal Reserve a more authoritarian level of control and surveillance over people’s finances.

https://beincrypto.com/jamaica-becomes-first-country-to-make-a-cbdc-legal-tender/

[Dunamisx]

Jamaica’s central bank has officially recognized the “Jam-Dex” central bank digital currency (CBDC) as legal tender, becoming the first country to do so. The Bank of Jamaica (BoJ) has legalized its CBDC in a move to provide an alternative to its cash-based economy.

While others are in bid and struggle to adopt bitcoin as a legal tender here comes Jamaica with it own way of display, what role has CBDC come to play in their current economy situation which is different from the fiat currency they have been using all this while, i see no difference but rather to get things more complicated for them, why couldn't they try a new way out from the power of centralization to the digital world of decentralization using bitcoin, it's a pity that Jamaica is just revolving round the same spot, CBDC as a legal tender just make no difference but rather creating an advancement to economy inflation and instability as it were before now in Jamaica, what a wrong move.

[jackg]

Do we know anything about the network itself though? I've been trying to search up on it and can't find anything to do with how it actually functions or any stats on it.

How do we know this isn't just a type of governmental bank that facilitates transactions between people as apposed to the private financial sector being an intermediary and is there much of a difference between a CBDC and a government owned bank (assuming the government has a decent amount of countrols over their CBDC in terms of things like "preventing money laundering").

[Yaunfitda]

Jamaica’s central bank has officially recognized the “Jam-Dex” central bank digital currency (CBDC) as legal tender, becoming the first country to do so. The Bank of Jamaica (BoJ) has legalized its CBDC in a move to provide an alternative to its cash-based economy.

While others are in bid and struggle to adopt bitcoin as a legal tender here comes Jamaica with it own way of display, what role has CBDC come to play in their current economy situation which is different from the fiat currency they have been using all this while, i see no difference but rather to get things more complicated for them, why couldn't they try a new way out from the power of centralization to the digital world of decentralization using bitcoin, it's a pity that Jamaica is just revolving round the same spot, CBDC as a legal tender just make no difference but rather creating an advancement to economy inflation and instability as it were before now in Jamaica, what a wrong move.

We can't compare bitcoin and CBCD though, and it's obvious that government can make it legal tender faster than any crypto including bitcoin.

I guess it's control, it they allow bitcoin then chances are, it's going to be very difficult for them to track it. As compare to CBCD, just a regular fiat and every transactions by their population should be in their ledger. We can't say that it's a wrong move as other bigger nations is also trying to 'adopt' CBCD's.

[bitmover]

Do we know anything about the network itself though? I've been trying to search up on it and can't find anything to do with how it actually functions or any stats on it.

How do we know this isn't just a type of governmental bank that facilitates transactions between people as apposed to the private financial sector being an intermediary and is there much of a difference between a CBDC and a government owned bank (assuming the government has a decent amount of countrols over their CBDC in terms of things like "preventing money laundering").

I was about to find some information about it. This is not related to blockchain.

The CBDC is called Jam-Dex (not related to decentralized exchange btw), and it uses a technology called eCurrency Mint.

She explained that NCB is focused on getting more individual and small merchant clients on board during the quarter, The BOJ deputy governor disclosed that the central bank is now testing the system with another DTI that acquired the hardware from Republic of Ireland-based technology provider, eCurrency Mint Incorporated, which was selected to support CBDC project implementation.
https://www.jamaicaobserver.com/business/jam-dex-no-way/

I found eCurrency web site, https://www.ecurrency.net/solution

it says that its technology is "unmatched by blockchain". It is distributed, not decentralized. They focus in central banks and commercial banks solution.

[arallmuus]

Do we know anything about the network itself though? I've been trying to search up on it and can't find anything to do with how it actually functions or any stats on it.

How do we know this isn't just a type of governmental bank that facilitates transactions between people as apposed to the private financial sector being an intermediary and is there much of a difference between a CBDC and a government owned bank (assuming the government has a decent amount of countrols over their CBDC in terms of things like "preventing money laundering").

Probably because it is, thats why it is named as digital currency instead of cryptocurrency meaning that its just some sort of digital cash that the goverment control. I honestly dont see any reason on why would they use an existing network because they wont have full control over it so it just makes alot more sense to create everything from scratch including the network assuming that it got one

[Despairo]

it says that its technology is "unmatched by blockchain". It is distributed, not decentralized. They focus in central banks and commercial banks solution.

But do you really think there's a country will make their own CBDC that 100% decentralized? I really doubt with it. When you're really create a completely 100% decentralized coin, you don't have any control about it including controlling the price. If the price always stick with their own fiat value or $1, this mean they have a control to burn or mint their coin. When the price is higher than $1, they will mint more their coin, when the price is less than $1 they will burn their coin.

Also CBDC is designed about the "banks future", anything that involved with banks will always centralized.

[kryptqnick]

It's interesting news, but it makes me wonder now about digital yuan and e-Naira. What is the difference of status between, say, e-Naira and Jam-Dex? Is it still a pilot program while Jam-Dex is getting more official, nationwide?
I'm also wondering how crypto policies are in Jamaica. From what I read they're not legal tender (that's not surprising) and are unregulated (so, they can be used at least for trading?). Will the CBDC launch affect the policies on cryptos?

[Moneyprism]

don't really know much about Jamaica, but I think this is a positive thing especially for crypto adoption going forward... because unlike many countries which restrict crypto adoption, they have instead formed their own CBDC and provide alternative payments to their citizens

[jackg]

I was about to find some information about it. This is not related to blockchain.

The CBDC is called Jam-Dex (not related to decentralized exchange btw), and it uses a technology called eCurrency Mint.

She explained that NCB is focused on getting more individual and small merchant clients on board during the quarter, The BOJ deputy governor disclosed that the central bank is now testing the system with another DTI that acquired the hardware from Republic of Ireland-based technology provider, eCurrency Mint Incorporated, which was selected to support CBDC project implementation.
https://www.jamaicaobserver.com/business/jam-dex-no-way/

I found eCurrency web site, https://www.ecurrency.net/solution

it says that its technology is "unmatched by blockchain". It is distributed, not decentralized. They focus in central banks and commercial banks solution.

The UK bought a lot of banks during the financial crisis, the goverment clearly missed a trick not generating a currency and making it seem like it was different from the pound... I'm surprised we don't have more of these CBDC type systems already if that's all they're doing (although maybe that's just treasury/fed bonds)...


They're probably a good thing for rivalling mastercard and visa but that's only if they're well marketed and companies support them well enough (I'm not even sure companies large enough pay fees for receiving debit/credit card payments).

[Leviathan.007]

More than anything this can be a piece of good news for their government than their people because, unlike cryptocurrencies and bitcoin, the central bank digital currency is under the control of the government, and just like the fiat money they can change the total supply and track any transaction, I think there is not a big difference between the traditional fiat and the central bank digital currency because in the end both are under control of the government, maybe they did it to make a competitor for bitcoin and cryptocurrencies in their country.

[hyudien]

don't really know much about Jamaica, but I think this is a positive thing especially for crypto adoption going forward... because unlike many countries which restrict crypto adoption, they have instead formed their own CBDC and provide alternative payments to their citizens

Do you understand the concept of CBDC itself? meaning that you are continuously monitored and have nothing to do with Bitcoin adoption which is more of a freedom system in maintaining the financial anonymity of each user. It is clear that CBDC is just a conventional form of finance that has switched to a modern system in order to have full control over the finances of every citizen who interacts with crypto. Definitely not a positive step for crypto adoption as it is still a centralized system.