Jamaica gave the green light to issue its central bank digital currency (CBDC) — known as Jam-Dex — as legal tender 💵 Learn how Jam-Dex works, and whether it will be beneficial to this developing country's economy 👇
) as legal tender. The nation has a largely cash-based economy, and it’s hoped that by implementing the CBDC, many of the unbanked will be able to improve their financial situation.
While not meant as a replacement for traditional money, they share essentially all of the same features as fiat but in digital form. Critics of CBDCs point to the power of governments to shut off specific people’s access to the coins as well as track movements and expenditures. However, it’s clear that their essentially worldwide rollout is nearly inevitable at this point, with over 100 countries, representing 95% of the world’s economy, either exploring or developing them.
One of the main advocates for Jam-Dex in the Jamaican government, Minister of Foreign Affairs and Senator Kamina Johnson Smith, hasthat the CBDC will greatly improve the financial well-being of people without bank accounts, as they are not required to use the digital currency.