Key Takeaways:
- CBJ has revealed that it is considering issuing a digital currency.
- CBDC will be legal tender and will be pegged to the Jordanian dinar.
The Jordanian Central Bank (CBJ) has revealed that it is looking into creating a digital currency. The central bank digital currency (CBDC) would be legal tender pegged to the Jordanian dinar. The governor of the CBJ predicted that cryptocurrency trading would be legalized in Jordan once the necessary legislation was in place.
The governor of the CBJ, Adel Al Sharkas, is investigating the possibility of creating a legal digital currency. He also predicted that cryptocurrency trading could be legalized in Jordan once the necessary legislation is passed. He stated:
“A study is currently underway to develop a legal digital currency linked to Jordanian dinar concerning the plans to issue a Jordanian digital currency. After enacting [the] legislation and regulations, it is possible that cryptocurrency trading will be permitted in the future.”
According to the report, Sharkas made his remarks during a meeting about digital currencies. The remarks followed a warning from Khair Abu Salik, chairman of Jordan’s lower house committee on economy and investment, about the risks of trading cryptocurrencies.
According to the CBJ Governor, Jordan banned cryptocurrency trading to protect investors from fraudulent cryptocurrency investment schemes. He mentioned that China and four other Arab countries had imposed similar restrictions.
Switzerland and France have completed several cross-border digital currency tests. China is currently at the forefront of CBDC development, but many European and Asian countries are speeding up their plans to keep up.
According to the Atlantic Council, 91 countries are currently working on their sovereign digital currency in June 2019, with only 14 having reached the pilot stage. Jordan has now joined a small group of countries that have or are considering establishing a CBDC.
