Finance minister makes first digital currency transaction

Finance Minister Dr Nigel Clarke conducted the first digital currency transaction on Tuesday using digital wallet, Lynk. 

He used the Lynk app to pay his barber, Paul Mills of PaulBless Cutz, in the central bank digital currency, Jam-Dex, as he opened the 2022-2023 budget debate.

Jam-Dex is the name given to the central bank digital currency (CBDC) designed to be a part of Jamaica’s digital payments system to facilitate greater financial inclusion and increase transaction velocity while reducing the cost of banking for the public.

“Paul came to my house yesterday to give me a haircut prior to this presentation. When he was finished, I realised that I didn’t have the cash to pay. I only had some - Paul is here today, and I am going to log into my Lynk account to pay Paul the $500 I owe him in Central Bank Digital Currency or Jam-Dex …DONE. That is the first public JAM-DEX transaction ever done in Jamaica,” Clarke exclaimed. 

The national rollout of the CBDC is scheduled for the beginning of the next quarter.

As an incentive for the general public to register and create a Jam-Dex electronic wallet, the GOJ is offering Jam-Dex credit of $2,500 to the first 100,000 wallets opened effective April 1, Dr Clarke announced. 

The BOJ expects to add four more additional wallet providers by June.

Last year, the BOJ minted $230 million worth of digital currency and issued $1 million worth to staff and another $5 million worth to the National Commercial Bank (NCB). 

Natalie Haynes, Deputy Governor, Banking & Currency Operations & Financial Markets Infrastructure at the BOJ previously said the central bank has created a launchpad for accelerating the Government’s digital transformation through payment system infrastructure and fintech developments. 

She noted that Lynk, as a fintech development, creates that bridge between Jamaica’s core payment systems infrastructure and the public, facilitating financial inclusion.

Lynk will function as a multi-currency wallet and enable users to conduct transactions in Jamaican dollar and Jam-Dex. 

“Lynk, being Jamaica’s newest digital wallet, is excited to be on the cutting edge of regulatory technology by being the first to integrate the CBDC into our platform,” said Lynk’s Chief Executive Officer, Vernon James. 

“Our main goal is to ensure that our customers have frictionless access to all payment channels,” he added. Lynk-to-Lynk transfers will remain free to all users, even transactions using Jam-Dex."