Central Bank of Jordan is exploring the possibility of launching a CBDC – Fintech

The governor of the Central Bank of Jordan recently said his institution is studying the possibility of launching a legal digital currency that will be linked to the national currency. He also suggested that cryptocurrency trading could eventually be allowed in Jordan once the necessary laws are passed.

Investor protection

Jordan is currently studying and exploring the possibility of launching a central bank digital currency (CBDC) pegged to its currency, the Jordanian dinar, the country's central bank governor said. Additionally, the governor, Adel Al Sharkas, suggested that the Central Bank of Jordan (CBJ) may eventually allow crypto trading once the appropriate regulatory framework is in place.

Sharkas' comments, made during a meeting called to discuss digital currencies, came after the head of Jordan's Lower House Economic and Investment Committee, Khair Abu Sa'ilik, warned of the risks associated with crypto trading.

At the same meeting, participants also reportedly discussed the type of regulatory regime that might be needed to protect investors from such risks. They also discussed the plan to launch a regulated cryptocurrency trading platform.

For his part, the CBJ governor is quoted in an Unblock Media Test report Explaining the reasons why Jordan banned crypto trading. He cited China and four other Arab countries that he said have also banned crypto trading. Al Sharkas said Jordan banned crypto trading to protect investors from fraudulent crypto investment schemes.

Passing laws to regulate crypto trading

Meanwhile, Sharkas is also quoted in the report as suggesting that Jordanians may be able to trade in digital currencies once the right framework is in place. He said:

"With regard to the plans to issue a Jordanian digital currency, a study is currently underway to develop a legal digital currency pegged to the Jordanian dinar. It is possible in the future to allow cryptocurrency trading after [the] laws and regulations come into force."

What do you think about this story? Tell us what you think in the comments below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide an escape route for Africans.

Photo credit: Shutterstock, Pixabay, WikiCommons