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House economy committee warns of cryptocurrency trading

Discussions came following CBJ’s plan to launch digital currency

By JT - Jan 30,2022 - Last updated at Jan 30,2022

A visual representation of the digital cryptocurrency Bitcoin (AFP photo)

AMMAN — Head of the Lower House Economy and Investment Committee MP Khair Abu Sailik on Sunday warned of the dangers of cryptocurrency trading.

The lawmaker's remarks came while presiding over a committee meeting to discuss the Central Bank of Jordan’s (CBJ) plan, in the presence of CBJ Governor Adel Sharkas, to launch cryptocurrencytrading, the Jordan News Agency, Petra, reported

Discussions also went over the mechanism to identify the concerned authorities to monitor trading, he said, adding that the committee seeks to protect citizens from any related risks and to help them avoid blackmail and fraud, Abu Sailik pointed out. 

During the meeting, the lawmaker asked about the bank's plan to issue a digital currency, in addition to legalising trading on the Forex investment platform.

Abu Sailik urged various media outlets to intensify their campaigns to raise awareness of the risks of cryptocurrencytrading.

Sharkas said that many countries, including Jordan, have banned cryptocurrency trading, such as Egypt, Kuwait, Morocco, and China.

The governor added that the prohibition is for several reasons, mainly to protect traders due to lack of experience, the currency’s loss of value as a result of exchange rate fluctuations and the possibility of fraud, piracy, hacking and theft.

On plans to issue a digital currency, Sharkas said a study is underway to issue it, noting that this currency would be linked to the Jordanian dinar and is legal.

In the future, it may be possible to allow cryptocurrency trading after enacting legislation and instructions to avoid money laundering and the funding of terrorist organizations, he pointed out. 

The CBJ has issued many warnings since 2014 on cryptocurrency trading dangers, he said, adding that the Forex investment platform is not subject to the bank's supervision, yet it is subject to the oversight of the Jordan Securities Commission (JSC).

Assuring Jordanians on monetary stability, he said that CBJ's foreign currency reserves have reached $18 billion, which covers the Kingdom's purchases for nine months, which is higher than the world average.

In this regard, he said that this stability means confidence in the Jordanian economy, pointing out that the Jordanian dinar exchange rate is "at its best”.

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