- The Jamaican government is a perfect example of the type of government that is leading the world of digital finance today.
- It’s digital, you don’t need to be there during the transaction.
- It is important for us to understand the potential of this technology for the future and to act accordingly.
When a technology disrupts the world at the speed of light, sometimes it is wise for governments to keep up with the technology in order to adapt to changing technology.
The Jamaican government is a perfect example of the type of government that is leading the world of digital finance today. The Jamaican government has shown tremendous initiative in legalizing and making a CBDC legal tender.
Before now, whenever you heard the term legal tender, what was the first thing that came to mind?
Physical notes, right?
Well, that is changing right now.
CBDC law passed
The government, through legislation, has expanded the definition of legal tender by combining physical coins and notes with the new forms of virtual tokens.
Along with these legal offerings, they have also built a Jamaican digital exchange, also known as Jam-Dex, through an amendment.
This Jam-dex was considered a long time ago. The planning was started in 2021 itself, but now the exchange is ready to launch this very month.
The Need for a Central Bank Digital Currency
An economy that relies on fiat currency and cash always has many problems. Part of the reason is that in a cash-driven economy, funds and money that you’ve worked so hard for aren’t safe. With the appearance of this Jamaican digital currency, issues such as security and trust issues are resolved.
It’s also a very convenient way to transfer your money considering that you don’t actually need a bank account for that, as Jamaican Governor Richard Byles said.
And it’s not just a store of value or a crypto promotional PR move. You can pay your bills with it, you can pay off your debts, shop and travel, everything that was possible with traditional physical currency is now possible with these digital coins.
It’s a really powerful tool. As soon as all governments realize that we can unleash a new level of power through this step, we will be moving towards a technologically advanced society.
It’s digital, you don’t need to be there during the transaction.
After the Jamaican move, many national governments are planning to launch their coins as well. These countries include:
Therefore, it is important for us to understand the potential of this technology for the future and to act accordingly.