The governor of the central bank of Jamaica has warned people who use or consider using cryptocurrencies to be aware of the associated risks. The governor added that the unpredictability of cryptocurrencies means they cannot function as a medium of exchange.
Not stable enough to be a good means of payment
Bank of Jamaica Governor Richard Byles has warned those using or considering using cryptocurrencies to be aware of the unpredictable nature of assets. Byles also said he sees cryptocurrency as an investment tool rather than a medium of exchange because its value “isn’t stable enough to be a good means of payment.”
In remarks published by the Jamaica Information Service (JIS), Byles, who spoke at a conference on digital and cryptocurrency, said the central bank of Jamaica is taking time to warn people about the volatility of digital currencies issued by individuals. . He also stated that his institution does not consider cryptocurrencies to be a good way to settle transactions. He added:
So, hopefully you are an experienced investor [who] can understand cryptocurrency, go ahead and use it. But we don’t see it as a good currency for transactions and payments.
The Central Bank will issue further notices
According to the governor, the Jamaican central bank only supports its central bank digital currency (CBDC). He also pointed out that, unlike cryptocurrencies which can rise or fall in value, “a dollar in your pocket today is the dollar in your pocket tomorrow”.
As previously reported by Bitcoin.com News, the Bank of Jamaica announced on December 31, 2021 that it had completed testing its CBDC. Following the completion of this phase, the bank is now leading the implementation of the Jamaican CBDC, according to the JIS report.
Meanwhile, Mario Griffiths, the bank’s director of payment systems and policies, is quoted in the same report as saying that the Bank of Jamaica plans to continue issuing warnings warning people of the risks associated with cryptocurrencies.
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