Jamaica’s central bank digital currency (CBDC) is ready to be accepted by bus and taxi drivers, with the expectation that it’ll simplify financial operations and improve efficiency.
Bus and cab drivers in Jamaica are set to use the country’s central bank digital currency, Jam-Dex, as it can improve operational efficiency, reduce costs, and mitigate security risks. Aldo Antonio, Acting Executive Chairman of the National Transporters Alliance Group (NTAG), told the Jamaica Observer.
NTAG officials have been trying to introduce Jam-Dex into private and public transportation operations, but the initiative is facing low adoption of the digital currency among consumers. So, the CBDC’s integration into transportation operations is also being considered in the context of stimulating the overall level of adoption of the innovative financial instrument in the country.
According to Antonio, food and public transportation are the two main sectors that can increase the daily use of Jam-Dex. Thus, the use of digital currency eliminates many operational risks and difficulties, such as the need to carry cash in large quantities and different denominations at all times to be able to count change.
The NTAG estimates that approximately 10,000 service providers in Jamaica today accept Jam-Dex payments, while the Lynk digital wallet, which provides access to Jam-Dex, is used by about 200,000 residents. The inclusion of public and private transportation drivers in the payment system will bring up to 30,000 additional Jamaicans to use the CBDC. Given the current pace of Jam-Dex adoption, this could happen before the end of 2023.
The Bank of Jamaica (BOJ) launched the Jamaican Digital Exchange, referred to as Jam-Dex for short, in 2022. The government predicts that within five years of the launch, approximately 70% of Jamaican citizens are expected to switch to the CBDC. According to the World Bank, the island’s population was 2.828 million in 2021. The Jamaican government is currently working to improve the experience of using the CBDC on mobile phones, as well as Jam-Dex training programs, which should help attract a wider range of users.
