The Bank of Jamaica (BOJ) says a significant number of small-business operators have registered with its digital currency, ‘JAM-DEX’, while a pilot project involving Government payment had been undertaken successfully.
Divisional Chief for Financial Markets Infrastructure at the Central Bank, Dr. Novelette Panton, said that as of February 18, at least 90 small merchants and 4,500 micro merchants were utilizing the digital wallet, Lynk.
Panton told a virtual forum organized by the Ministry of Justice, that in December, JAM-DEX facilitated the first government payment, using the system, for 72 persons and 70 merchants, with transactions valued over J$600,000 (One Jamaica dollar=US$0.008 cents).
“JAM-DEX is alive, and is being used,” she said, adding that barbers and hairdressers, fruit vendors, coconut vendors, persons in entertainment, carwash operators, taxi drivers, and other persons are using the system, as it facilitates “instant processing” of transactions, online and offline.
“JAM-DEX is different from a regular bank account and is easier and simpler to obtain. Customers will be able to top up their wallet with JAM-DEX through all authorized agents, or smart ABMs (Automated Banking Machines), and do business using the phone to phone with merchants, friends, and families,” Panton told the audience.
She said the system allows for the transfer of funds from regular bank accounts to digital wallets, and it cannot be accessed by unauthorized persons, even if the account holder loses his or her telephone, as a password or code must be used to “have access to your money”.
She said that the National Identification System (NIDS) legislation will play a major role in facilitating financial inclusion through the Central Bank Digital project, by enabling Jamaicans to access “simple and secure” financial products.
Currently, the National Commercial Bank (NCB) offers JAM-DEX through LYNK, its digital wallet. Other wallet providers are expected to come on board for the distribution of JAM-DEX later this year.
Finance Minister Dr. Nigel Clarke recently announced that the first 10,000 merchants using the
JAM-DEX service to pay for goods and services, as of April 1, this year will receive J$25,000 of JAM-DEX upon registration and onboarding.
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