The Bank of Jamaica (BOJ) is stepping up efforts to boost the use of its central bank digital currency, JAM-DEX, as it looks to make the digital payment option more practical for everyday transactions.

Speaking on Taking Stock with Kalilah Reynolds, BOJ Governor Richard Byles said that while person-to-person JAM-DEX transfers have been technically possible for two years, widespread adoption has stalled because businesses are unable to process payments.

“A lot of transactions for persons like you and I happen at businesses that use POS machines,” he explained. “Those need to be reconfigured to take the QR code of JAM-DEX, and we have been working with the banks to have that adjustment made.”

According to Byles, the central bank has been encouraging financial institutions to update their point-of-sale systems, even offering to help cover the cost of doing so. 

The governor said the BOJ is “hopeful that we’ll make a breakthrough with them shortly,” but acknowledged that the banks have shown limited enthusiasm so far because JAM-DEX does not promise major profits.

To change that, the BOJ is now allowing banks to charge a small transaction fee for JAM-DEX payments, which is a significant shift from the original goal of keeping it entirely free. 

Byles described this as a strategic compromise to incentivise cooperation. “There will be a transaction cost involved,” he confirmed, though the exact rate has not yet been finalised.

He emphasised that the digital currency still offers clear long-term benefits for both banks and consumers by reducing the country’s heavy reliance on cash. 

“A lot of the challenges that the banks have has to do with cash; cash at ATMs, cash over the counters, moving cash around, protecting cash,” he said. “That is what JAM-DEX will help to address by reducing the demand for cash in the economy.”

The BOJ’s push comes amid wider efforts to modernise Jamaica’s financial system and promote financial inclusion.