Jordan’s Central Bank Continues to Thwart Cryptocurrency Regulatory Compliance
Despite growing interest in cryptocurrencies among Jordan’s youth and business community, the country’s Central Bank remains steadfast in its ban on digital assets. The bank’s reluctance to engage with cryptocurrency has stifled innovation and growth, leaving many frustrated and wondering why.
A History of Resistance
The Central Bank of Jordan (CBJ) initially prohibited cryptocurrencies in 2014, citing concerns over their potential misuse for illegal activities such as hacking and money laundering. However, experts argue that this fear is largely unfounded, pointing out that traditional banks are statistically more prone to hacks.
The Devastating Impact
The ban has had a devastating impact on the country’s financial ecosystem, making it nearly impossible for individuals to purchase cryptocurrencies online. Users of popular trading platforms like EToro have reported days-long holds on their bank accounts, which can only be lifted by submitting transaction history proving no cryptocurrency was purchased.
Experts Weigh In
- “It’s illogical that Jordan’s lottery system (gambling) is regulated and accepted, whereas cryptocurrency investment isn’t.” - Talal Tabbaa, cofounder of Jibrel Network
- “The CBJ’s reluctance to engage with cryptocurrency has stifled innovation and growth in the country. It’s a lost opportunity for Jordanians.” - Issa Mahasneh, Executive Director of Jordan Open-Source Association
Contradictory Statements
The CBJ has issued contradictory statements, claiming support for “solutions that leverage on new innovations like blockchain” while simultaneously stressing its policy of banning cryptocurrencies in the Jordanian financial system. However, experts say that these policies cannot be reconciled, as leveraging blockchain technology requires the free exchange of cryptocurrencies.
Regulatory Sandbox Program
Despite the ban, some companies have managed to collaborate with the CBJ through a regulatory sandbox program. However, this has not been enough to offset the negative impact of the ban on the country’s financial ecosystem.
The Future Remains Uncertain
As the global financial landscape continues to evolve, it remains unclear when the Central Bank of Jordan will finally engage with digital currencies. However, one thing is certain - attempts at suppressing a growing technology almost always backfire, and the CBJ’s public stance on cryptocurrency remains unchanged for now.
Conclusion
The ban on cryptocurrencies in Jordan has stifled innovation and growth, leaving many frustrated and wondering why. The country’s Central Bank must reconsider its stance on digital assets to allow Jordanians to participate in the future of finance.