Jamaica joins several other Caribbean countries that have embraced with both arms the thrust to regularize digital currencies to their financial landscapes. It is expected that the more prominent technology becomes, the more people will choose to do their transactions digitally. If embraced, Jamaicans will soon be using fewer notes, coins, and checks.
What is Digital Currency?
According to corporatefinanceinstitute.com, Digital money, or digital currency, is any form of money or payment that exists only in electronic form. Digital money lacks a tangible form such as a bill, check, or coins.
Digital money currently comes in cryptocurrencies and virtual currencies such as the central bank digital currency (CBDC), Bitcoin, and Ethereum. According to the BOJ, CBDC is a digital form of central bank-issued currency and is, therefore, legal tender. It is not to be confused with cryptocurrency, which is privately issued and not backed by a central authority. CBDC is fully backed by the Central Bank, the sole issuer.
Digital Currency: The Game Changer in Jamaica
Expected to be a game-changer in Jamaica’s landscape, digital currency is projected to be introduced in early 2022. According to the Bank of Jamaica (BOJ), they have started with a pilot tested in the BOJ’s Fintech Regulatory Sandbox between June and December 2021. While it is early days yet, like other Caribbean nations, Jamaica will measure the benefits against the pitfalls of digital money integration into the traditional use of notes, coins, and checks. Besides providing a digital alternative to cash transactions, here are a few anticipated immediate benefits of using digital currency:
- Reduction in the distribution and storage cost of traditional money
- Reduction in high transaction cost
- Allowing persons without a bank account to carry out transactions via electronic based platforms
- Reduction in the eligibility requirements to participate in the financial system
How Will it Work?
According to the BOJ:
- The Central Bank Digital Currency (CBDC) will not cost consumers and will be a full complement to banknotes and coins issued by BOJ.
- Households and businesses will be able to use CBDC to make payments and store value at no cost. Unlike cash, however, consumers will be able to make payments with CBDC anywhere, any time, on any compatible device.
- To use CBDC, consumers will need to have a CBDC account, which will be different from a regular bank account and much easier and simpler to obtain,
- To carry out CBDC transactions anywhere and at any time, consumers will be able to access, download and deploy a mobile wallet app on any smartphone, tablet, or similar compatible device using the networks of both major telecom service providers. Customers will also be able to top-up their accounts with CBDC through all authorized agents or smart ABMs and do business using CBDC phone-to-phone with merchants.
What Are the Chances of it Failing to Take Root in Jamaica?
While it is anticipated that digital currency will change the financial landscape in Jamaica, there are still some concerns. Jamaica’s domestic cultural landscape is one that primarily embraces traditions. For that reason, some believe digital currency may suffer the same fate as mobile money, which is still yet to find a place in Jamaica, despite its introduction several years ago. Remaining hopeful, the BOJ has indicated its pride in being part of a trend in central banking that the Caribbean leads.
For information about digital currency in Jamaica, feel free to write to us at Caribbean Bold Magazine.
What are your views of digital currency in Jamaica? Do you prefer digital currency or traditional notes and coins? Share your comments and questions; we would love to hear from you.
#digitalcurrency #centralbankdigitalcurrency #jamaicanmoney
Then came the silver lining behind the cloud…
By silver lining, I mean the hope technology provided in all its capabilities and capacities. Some unemployed persons became virtual freelancers offering their skills and services to clients via online freelancing platforms.
When Chai Studios’ (in Kingston, Jamaica) owner, Shani McGraham Shirley, realized she had to close the doors of her physical fitness studios, the fun-fitness coach decided to post on her FaceBook page a schedule for virtual classes. Her first class was an unexpected, overwhelming success. In its ten years, never once did Chai Studios have 100 persons in any one class before. COVID-19 gifted Shani, and her staff increased membership and earning. Her prompt and positive responsiveness to the enforced social restrictions directly influenced the transformation and increased profit margins for her once exclusive brick and mortar business – now online!
The COVID-19 silver lining was not limited to business and freelancing. It impacted high rolling investors and persons who had never traded or bought stocks before. Due to the pandemic, several companies’ stock values declined. It created the opportunity for more persons to enter the market as shareholders. Real estate also became affordable for some persons, as others decided to part company with properties to provide for their families. Companies also merged and shared their resources for efficiency and greater productivity.
The Ultimate Positive
The ultimate positive from COVID-19 resides in the lessons the experience taught. However, only in the application of the learning will we truly receive value. According to Forbes Advisor, March 2021, “There’s a lot to learn from the events of the past 12 months”. “The year 2020 was the ultimate playbook of investment lessons,” says financial planner Desmond Henry of Topeka, Kan. “You could write a whole book about it.”
For us at BGB, the COVID-19 experienced came with its fair share of challenges and disappointments. However, the impact of learning and earning outweighed the negatives. We grew from the experience and overcame the challenges with ease by focusing on the positives.
“To truly acquire the learning from every wisdom teaching experience, we must embrace each journey and respect our sacrifices.” – Giannah Smith.
What did you learn from the COVID-19 experience? As you transition from inside to outside, think about how you can use that learning to overcome and thrive!
Share with us; we would love to hear from you. Email: info@blackgreenandbold.com