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The Governor of the Central Bank of Jamaica warned those using or planning to use cryptocurrencies to be aware of the associated risks. The governor added that cryptocurrencies are unpredictable, meaning that they cannot serve as a medium of exchange.
They are not stable enough to be a good means of payment.
Bank of Jamaica Governor Richard Biles warned those using or planning to use cryptocurrencies to beware of the unpredictable nature of the assets. Biles also said that he views cryptocurrencies as an investment product rather than a means of exchange because their value is “not stable enough to be a good means of payment.”
Speaking at the Digital and Cryptocurrency Conference inremarksreleased by the Jamaica Information Service (JIS), Byles said it will take time for Jamaica’s central bank to warn people about the volatility of privately issued digital currencies. He also said that his institution does not see crypto as a good means to settle transactions. He added:
So, if you are a sophisticated investor who can understand cryptocurrency, hopefully, go ahead and use it. But we don’t see it as a good currency to trade or make payments with.
Central Bank to issue further cautionary statement
According to the Governor, Jamaica’s central bank is backing only the Central Bank Digital Currency (CBDC). He also stressed that unlike cryptocurrencies, which can either go up or down in value, “a dollar in your pocket today is a dollar in your pocket tomorrow.”
As Bitcoin.com News previously reported, the Bank of Jamaica announced on December 31, 2021, that it had completed testing of CBDC. With the completion of this phase, the bank is now leading the implementation of Jamaica’s CBDC, the JIS report stated.
Meanwhile, the bank’s Director of Payment Systems and Policy, Mario Griffiths, is quoted in the same report as saying that the Bank of Jamaica will continue to issue alert letters warning of the risks associated with cryptocurrencies.
Image credits: Shutterstock, Pixabay, Wiki Commons, Shutterstock / Craig F Scott
