PM Champions Universal Payment System

Prime Minister, Dr. the Most Hon. Andrew Holness, has highlighted the need for a universal payment system, particularly as it relates to the Government being able to make payments and cash transfers to citizens.

He said that many other countries are developing central payment platforms backed by the Government.

“They don’t all use what we call the central bank digital currency (CBDC). We have a central bank digital currency, which has not taken off as we would have liked,” he pointed out.

The Prime Minister noted that the need for the system was evident in the Government’s assistance to victims of Hurricanes Beryl and Melissa, and more recently, persons on irregularly settled lands in Trelawny.

“When we went there [Trelawny] to give some cash transfers, the recipients had no bank accounts. So, we must, as a matter of urgency, and I’m hopeful that the central bank will take on this consideration to create a universal payment platform,” he said.

The Prime Minister was making his contribution to the Virtual Assets Service Providers Act in the House of Representatives on Tuesday (September 29).

The legislation, which was passed, seeks to establish a formal licensing and supervisory framework for virtual asset businesses to ensure compliance with international anti-money laundering standards.

A virtual asset service provider is any business that handles cryptocurrency or other digital assets for or on behalf of other people as a commercial service.

Prime Minister Holness pointed out that the Bill aims to regulate an emerging sector and is not meant to create a universal payment system in which cryptocurrencies or other digital assets become legal tender.

“It is an opportunity but I believe we should approach this in stages and very carefully. Our policy perspective and approach is that we should approach it cautiously. So, the first step is to create the regulatory environment for digital assets,” he said.

The Prime Minister noted, however, that he is an advocate for a universal payment system.

“We have pushed for it. It’s something that the central bank knows what my position is but I hasten to say that the central bank is independent,” he said.

“We need to create the rails on which all of these payment systems can operate and integrate and talk to each other and allow for the immediate an instantaneous transfer of cash between persons. That is an imperative,” he added.

Examples of universal payment systems include Brazil’s Pix, which is an instant, 24/7 digital payment system created and operated by the country’s central bank; and India’s Unified Payments Interface (UPI), which is the world’s largest real-time retail digital payment system, allowing users to transfer money instantly between bank accounts using a mobile device.