AMMAN — The
Central Bank of Jordan (CBJ) is studying the possible launching of a digital currency backed by the
Jordanian dinar at a fixed exchange rate, according to statements made Sunday
by the CBJ’s director.
اضافة اعلان
CBJ Director Adel Sharkas made the
announcement at a meeting with the Parliamentary Economy and Investment
Committee.
The world is developing rapidly and not
pursuing opportunities in the digital environment is unacceptable, MP Khair Abu
Saalik, head of the parliamentary committee, told
Jordan News. He agreed with
the CBJ’s decision to explore the viability of an official Jordanian digital
currency.
The lawmaker stressed that once the study
has been completed, the committee will support it, but “we cannot take any step
before we study all aspects ... of the issue in terms of trading, the safety of
this currency, the ability to trade it, and its impact on the services of the CBJ."
The legality of the digital a key
question, Abu Saalik said, as the trading of digital currencies in Jordan is
wholly prohibited.
The deputy concluded by saying that it is
too early to judge the impact of these currencies on the economy and
investment, and must wait for the results of the CBJ’s study.
Some countries have already started to
adopt digital currencies backed by their central banks.
Wajdi Makhamreh, an economist, told
Jordan
News that Sharkas’ decision is keeping pace with digital developments. While
there is not enough information to judge yet, thinking about this step shows
promise for Jordan in digital economy, he said.
Makhamreh, too, agreed that it was too
early to tell what the effects a Jordanian digital currency would have on the
economy.
Economist Yousef Damra told
Jordan News
that the idea of nationally backed digital currencies is still a new one that
requires in-depth research worldwide, but that participants in a study by the
International Monetary Fund on the topic were supportive of it.
"The digital currency may be a new
tool for drawing monetary policy globally," Damra added. Were it not for
experts’ belief that this step positively impacts the Jordanian economy and
investment, they would not have presented studying it and talking about it
publicly, he said.
Damra stressed that the difference between
the digital currencies circulating now and the digital currency that the CBJ is
studying is that it will be backed by the Jordanian dinar, meaning that it will
be safe for trading as the exchange rate for it will be guaranteed, and its
value will also be maintained. Thus, it will be safer to trade than existing decentralized
digital currencies such as bitcoin and ethereum.
For its part, the
Ministry of Digital Economy and Entrepreneurship said that it is awaiting the results of the CBJ’s
study and will issue a statement based on tangible data.
Despite the best efforts of
Jordan News,
the CBJ were not available for comment.
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