The Bank of Jamaica, which acts as the Central banking regulator in the African nation, has taken the step to lead the world in terms of cryptocurrency innovations. The latest news from the local media outlets suggests that the BoJ officials have introduced a new CBDC or Central Bank Digital Currency in the region called Jamaican Digital Exchange or Jam-Dex. The new CBDC has also been elevated to the level of legal tender in the region.
With this new legislation for CBDCs, Jamaica has become the first country in the world to recognize a CBDC as an official legal tender under its jurisdiction. Talking about the matter, the governor of BoJ, Richard Byles, also conducted an interview with the media where he shared useful insights and use cases for the new legal tender.
New CBDC will Launch in the Upcoming Months
The BoJ is currently carrying out a pilot phase before the main launch. On the other hand, the new centralized digital currency has not been released to the masses just yet. As per the statement issued by governor Byles, the new CBDC will make its public debut before the end of the current month.
The BoJ officials also claimed that the central monetary organization had taken the step to support the digital payments transformation in the region. Furthermore, the BoJ officials also warrant that the paper currencies are going to make for a better exchange of value in comparison to the bank-issued coins and notes.
Citing some technical and legal delays, the commemoration event was postponed till the second quarter rather than Q1 as planned before. eCurrency, the company that is working in tandem with the government of Jamaica to issue the CBDC, has also talked with the media on the matter.
CEO Jonathan Dharampalan recently claimed that Jamaica introduced legislative clarity to ensure the legal tender status of the digital dollar that would allow the users in the region to employ it for making everyday payments and settling all types of debts.
Thus far, around ten countries around the world have introduced a CBDC under their jurisdiction. Some of the nations to take the step include the Bahamas, Nigeria, and Caribbean Island countries.
However, none of the countries has yet passed a unanimous legislature to allow a CBDC to operate as a legal tender like Jamaica. Meanwhile, China is also closing the gap to complete its e-CNY pilot phase and introduce its pan nation ASAP.