The Jamaican government will airdrop $16 to first adopters of the CBDC wallet.
The country will distribute 2500 Jamaican dollars (US$ 16) to the first 100,000 citizens who set up a CBDC wallet, starting April 1, to raise awareness and support usage.
Delivering the keynote at the 2022/23 Budget Debate in the House of Representatives this week, Finance Minister and Public Service Minister Dr. Nigel Clarke stated that the main purpose of the movement is to promote CBDC.
Bank of Jamaica, Jamaica Digital Exchange called the CBDC move “No cash, no problem!” announced the slogan.
The initiative will be part of the digital transformation of the Jamaican economy. According to the Minister of Finance, any person with an existing bank account can automatically qualify to use a JAM-DEX wallet. The government plans to announce more incentives to use the CBDC, which is scheduled to be launched between April and June.
The government and central bank will also press for the Bank of Jamaica to be the sole issuer of JAM-DEX and to have CBDC recognized as fiat currency.
Clarke emphasized that the more tradesmen accept CBDC, the more widespread its use will be. The government will also bring new incentive packages to the agenda for this.
CBDC Can Increase Banking Engagement
According to data from the Jamaica Observer, approximately 17% of the country’s population does not have any bank accounts. According to the research conducted in the country, citizens who do not have a bank account tend to spend more than those with a bank account. A CBDC to be launched could potentially help this income group join the country’s banking system.
The Minister stated that citizens who do not have a bank account will need a CBDC wallet that fulfills the KYC provisions.
“If you don’t have a bank account, everything needed to create a JAM-DEX-enabled wallet is simplified. KYC information: name, address, date of birth, tax registration number (TRN), and government-issued photo ID such as a valid driver’s license, passport or voter ID card”
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