JAM-DEX users will not have to worry about their private information being shared with the Government, according to Director of Payment Services and Development Department at the Bank of Jamaica, Mario Griffiths.

JAM-DEX, short for Jamaica Digital Exchange, is the digital form of Jamaican currency.  It is held in a digital wallet that users can access from their mobile devices.

The BOJ executive assured that all JAM-DEX user data will be stored with the wallet provider. 

Currently, the only digital wallet in Jamaica is NCB’s Lynk app; however, Finance Minister Dr Nigel Clark announced during his opening budget presentation that an additional four wallet providers are expected to come on board by June. 

Griffiths acknowledged that users have expressed worries about the Government having access to their private information. 

“Once you register with your wallet provider, only your wallet provider has your information. What comes back to the BOJ is really just information on that digital currency.  It’s just transactional information for us to better understand the flow and circulation of money,” he explained.

Safer than carrying cash

He added that one of the major benefits of CBDCs such as JAM-DEX is the level of safety it provides.

“If you’re walking about with large sums of cash and that’s visible; that’s a risk to you. With JAM-DEX, you’d be able to walk around with that same large amount of funds with nobody knowing because it’s on your device,” he noted. 

As for the security risks associated with the use of CBDC, he said that JAM-DEX is on all three levels; at the level of the central bank, wallet provider level and the user level. JAM-DEX uses a secure technology to carry out transactions.

He said that while specific login requirements will vary based on wallet providers, the wallet will require multi-factor authentication. Whether it be a username and password, one-time pin combination or the use of biometrics, the wallet provider will be responsible for that level of security.

He added that users also have the responsibility of ensuring that their digital wallets are secure by not disclosing their usernames, passwords or other sensitive information that can be used to gain access to their funds.

Griffiths emphasised that JAM-DEX is just like the physical cash, just in a purely digital form. To that extent, he said that JAM-DEX is not insured; however, he noted that if the BOJ observes that the digital wallet provider is failing, it has the authority to step in and recover users’ funds and redistribute either to another wallet provider or in bank notes.

Offline access coming

Meanwhile, Griffiths says users will soon be able to fully access JAM-DEX while offline. 

He says the bank is working on ways to ensure security while accessing JAM-DEX offline.

Griffiths noted JAM-DEX can be accessed while connected to the Internet or mobile data as well as offline; however, offline access is limited. 

“We will continue to work on that where you can be partially offline or you can be fully offline. We’re looking into the hardware and infrastructure and the process around that to ensure that we maintain the necessary security while you use JAM-DEX,” he said.

JAM-DEX will become completely available to the public on April 1.

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