Wed | Dec 6, 2023

JAM-DEX would have caught SSL fraud

Published:Saturday | January 21, 2023 | 12:06 AM

THE EDITOR, Madam:

The use of JAM-DEX would have caught the fraud at Stocks and Securities Limited (SSL) very early and prevented losses to its clients.

The move by the Bank of Jamaica to issue a digital currency, that is, money available only in electronic form, will not only facilitate monetary transactions and help the thousands of unbanked persons, but will also substantially reduce the incidences of white-collar crime ( public corruption, healthcare fraud, mortgage fraud, securities fraud, and money laundering), and even violent crime.

Jamaica has taken a bold step, and started the roll-out of the central bank’s digital currency (CBDC). The Bank of Jamaica’s digital currency (JAM-DEX).

CBDCs makes it possible to track payments from one person to another, so it will be impossible for criminals to hide the proceeds of their crimes.

No longer will corruption, large or small, remain hidden, since all payments between persons and entities are traceable with CBDCs.

Of course, there are other spin-off benefits to the Government. Those merchants who prefer cash transactions in order to evade General Consumption Tax (GCT) and income tax will no longer be able to do so. All purchases and sales will now be electronically captured.

If JAM-DEX is properly promoted, its use in Jamaica could become widespread, since most of our citizens are in possession of smartphones. There is the need, however, to have point-of-sale terminals issued to the smallest of merchants and adequate Wi-Fi service nationwide.

With the move to a digital currency, we will see an increase in the number of cybercrimes. However, our main objective must be to reduce/mitigate white-collar and violent crime and make our country safe to visit and live in for everyone.

The full roll-out and use of JAM-DEX cannot come too soon.

NORMAN MARSH