Connect with us

Global News

IMF gives recommendations to Jordan for rCBDC implementation



Source: Unsplash
  • With the completion of an IMF report on Jordanian markets, Jordan is one step closer to launching a retail CBDC.
  • The IMF warned Jordanians to avoid disintermediation in the financial system.

With the completion of an International Monetary Fund technical report on Jordan’s markets, the Central Bank of Jordan is one step closer to launching a retail central bank digital currency (rCBDC).

Last year, the IMF conducted a three-month mission to help the bank prepare a CBDC feasibility report. The IMF has only recently published its report.

What does the report say?

The IMF gave the existing retail payment market of Jordan a largely positive review, calling it well-integrated while working between July and September 2022.

According to the report, two non-bank payment service providers (PSPs) have generally accessible and appropriate products, and the country has high smartphone penetration.

An rCBDC, however, would improve financial inclusion by offering services to residents who do not have smartphones. It could also help to improve the domestic payment system by opening up its infrastructure to PSPs and lowering the cost of cross-border transfers.

The International Monetary Fund warned Jordanians to avoid disintermediation in the financial system, which could contribute to instability during times of stress.

The details

The Jordanian financial sector has good information security governance and management practices, according to the IMF, but an rCBDC as an attractive target could increase cyber security risks. According to the report, solid legal foundations for an rCBDC should also be established.

“RCBDC may offer some benefits, but it does not necessarily address pain points. On the other hand, a cross-border rCBDC could add value, particularly if the authorities coordinate with other countries in the region,” the report adds.

An rCBDC would not address issues such as low financial literacy and a persistent cash culture.

In February 2022, Jordan’s central bank announced that it was researching a CBDC. In Jordan, cryptocurrency trading is prohibited. A proposal by the central bank to introduce cryptocurrency trading was bitterly opposed in the parliament.

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.

Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.