Jamaican Govt Set To Airdrop $16 To First 100K CBDC Wallet Adopters
As a part of the marketing campaign for central bank digital currency (CBDC) adoption, the Jamaican Government is all set to airdrop 2500 Jamaican dollars (16 USD) to the first 100,000 citizens to adopt CBDC wallets after April 1st.
During his opening presentation in the 2022/23 Budget Debate in the House of Representatives, Minister of Finance and the Public Service Dr. Nigel Clarke stated that the main objective of the move is to encourage citizens to use CBDC as an option to conduct transactions.
The first 100,000 Jamaicans establishing Central Bank Digital Currency (CBDC) wallets (accounts) after April 1, will receive a $2,500 deposit from the Government.
In February, Bank of Jamaica (BOJ) announced the country’s CBDC effort, called Jamaica Digital Exchange (JAM-DEX), featuring a tagline “No cash, no problem!”
As part of Government’s digital transformation of Jamaica’s economy, any individual with an existing bank account can automatically be eligible for a JAM-DEX wallet. The Government plans to announce further incentives to use the new CBDC during the rollout, scheduled for the beginning of the Q2 this year.
The Jamaican Government and central bank will also plan to make the BOJ to be the sole issuer of JAM-DEX, and for the CBDC to be recognized as legal tender.
Clarke also said that the more merchants such as corner shops, vendors, and bars accept JAM-DEX, the more widespread its use will be. The Government is also looking to incentivize businesses to set up electronic wallets and to conduct payments in JAM-DEX.
According to Jamaica Observer around 17% of Jamaican population is currently unbanked. Recently, several countries have jumped on the CBDC bandwagon. For Jamaica, the study reveals that a citizen without a bank account is likely to spend considerably more than those who do have a bank account. A CBDC could potentially provide a solution for cohort of earners to join the country’s banking system.
For the unbanked population, the minister stated that the citizens will need a CBDC wallet that has KYC provisions.
“If you don’t have a bank account, all that is required to set up a JAM-DEX-enabled wallet are simplified Know Your Customer information: name, address, date of birth, tax registration number (TRN), and a valid government-issued photo ID such as a driver’s license, passport, or voter identification card. Of course, once NIDS is fully implemented, this will be accepted.”
So far, JAM-DEX has been met with a mixed response. Some have questioned the leaders’ motives behind the move, others were up in arms on the nomenclature, choice of logo, and even the slogan.
