Senate Approves Central Bank Digital Currency

• The Bank of Jamaica (BOJ) has been given the authority to issue Central Bank Digital Currency (CBDC) as legal tender locally, with the Senate’s passage of the Bank of Jamaica (Amendment) Act, 2022 at Gordon House on Friday (June 3). 
• Consequent to the legislation’s passage, the way has been paved for the BOJ to proceed with the national rollout of the CBDC – JAM-DEX. The pilot was undertaken between August and December 2021. 
• Full CBDC implementation is expected to significantly reduce traditional challenges associated with many Jamaicans not having a bank account. Ultimately the implementation of the CBDC will improve the level of financial inclusion domestically, and help to improve payment systems. 
• Currently, the National Commercial Bank (NCB) offers JAM-DEX through Lynk, its digital wallet. In this regard, anyone with Lynk will be able to complete transactions with another Lynk wallet holder using JAM-DEX at a date to be advised by NCB.

(Sources: JIS News and NCBCM Research)