Finance Minister Fayval Williams says the Jam-Dex digital forex stays “alive and effectively” however admits it’s roll-out remains to be going through hurdles.
JAMAICA’S central financial institution digital forex (CBDC), Jam-Dex, stays mired in stagnation two years after its high-profile roll-out, with circulation stagnating at simply 0.09 per cent of the nation’s whole cash provide as industrial banks resist the profit-free mannequin and companies balk at technical hurdles, parliamentary debates and central financial institution knowledge reveal.
The replace got here in Parliament’s Standing Finance Committee assembly on Thursday as Finance Minister Fayval Williams responded to queries from Julian Robinson, Opposition spokesman on finance, who was looking for solutions on the progress of the roll-out of Jam-Dex.
“BOJ launched Jam-Dex instead forex; I don’t know whether it is nonetheless being pursued by the Authorities of Jamaica. In case you may give me an replace as as to whether we’re going that route, whether or not now we have stopped, whether or not now we have paused, whether or not we’re pursuing another, for those who can provide me an replace on that,” Robinson requested.
“Member, so far as I do know we’re nonetheless pursuing it,” Williams replied.
“Clearly it would take some sources to onboard individuals, to onboard monetary establishments, and to onboard companies. The final time I heard the governor converse on this, onboarding the companies was going slightly bit slower than anticipated. However I do know that they’ve recognized among the points, they usually have been working and can proceed to work on making certain that there’s clean onboarding of companies — as a result of that’s a key element of having the ability to see widespread adoption of the Jam-Dex,” Williams continued.
The digital forex, launched in 2022, was touted by former Finance Minister Nigel Clarke as being one method to cut back transaction charges and modernise Jamaica’s monetary system. But, solely a mere $258.4 million in Jam-Dex is in circulation as of January 2025 — a fraction of the $286-billion whole forex provide — regardless of a $250-million Authorities incentive programme in 2022 concentrating on 100,000 customers, with every getting $2,500. Financial institution of Jamaica (BOJ) had projected in 2021 that digital transactions would eclipse money inside a decade, however Jam-Dex’s sluggish uptake now casts doubt on that timeline.
Central to the deadlock is resistance from industrial banks, which have proven “reluctance to embrace” Jam-Dex as a result of they “can’t connect a price to it”, BOJ Governor Richard Byles acknowledged in 2022. Nationwide Industrial Financial institution (NCB), the only real preliminary pockets supplier, has scaled again promotions, whereas 4 different deliberate monetary establishments have but to totally onboard.
“The outlay required by monetary establishments is exorbitant,” Robinson informed Parliament this week, noting NCB has seemingly retreated from the venture, and declaring the initiative “useless” amid stalled service provider adoption. Williams countered that Jam-Dex stays “alive and effectively”, blaming delays on companies rejecting dual-payment techniques. “They need integration into present point-of-sale machines,” she stated.
“So, member, it’s not simply the monetary sector that’s required to deliver individuals on board — that’s only one element of it. The opposite very significant factor is getting companies to make use of it. Once more, my understanding is that companies would favor for Jam-Dex to have the ability to be facilitated by their present point-of-sale machines, so there’s some work that will must be finished to have that type of integration into the one point-of-sale machine that companies use. They don’t need to use two totally different machines. So, that’s the place the work is being finished proper now to get that type of seamless integration of Jam-Dex into point-of-sales machines.”
Financial institution of Jamaica didn’t reply to queries about Jam-Dex, and NCB promised responses, although none have been forthcoming as much as press time.
The stalemate undermines the Authorities’s 2022 pledge that Jam-Dex would curb banking charges, which common $150 per transaction — a burden for Jamaica’s unbanked 17 per cent.
BOJ Deputy Governor Natalie Haynes had forecast “widespread acceptance” by 2027 however with simply 0.09 per cent penetration, even proponents admit challenges.
“The Jam-Dex is a venture that’s nonetheless very a lot alive and effectively. We have now to unravel the difficulty on the service provider facet by way of the service provider having the ability to settle for Jam-Dex in a seamless approach. That’s being labored on at present, and that’s what I may say to the place that’s and the possible influence that Jam-Dex would have on charges as soon as Jam-Dex is up and totally useful and dealing.”
The minister was requested to offer a full replace on the difficulty when she takes the stand for the start of the funds debate on March 11.
Minister of Finance Fayval Williams at Parliament’s Standing Finance Committee assembly on Thursday March 6, 2025. At proper is Monetary Secretary Darlene Morrison. (Picture: Garfield Robinson)
