Central Bank of Jordan warned the public against using Bitcoin
In line with other central banks, the Central Bank of Jordan (CBJ) has warned the public against the use of digital currency, particularly Bitcoin.
CBJ said that digital currencies are not legal tender and that investing in digital currencies carry high risks, citing severe volatility and fluctuations, financial crimes, hacking and electronic piracy, and the potential of total loss due to the absence of a guarantor or underlying assets.
“Recently, a global phenomenon of trading a virtual currency called bitcoin became active around the world. CBJ seeks to protect citizens and the investors, by warning them that virtual currencies are not legal tender and there is no obligation on any central bank in the world or any government to exchange its value for real money issued by them nor backed by underlying international commodities or gold,” said CBJ.
The CBJ urged people to make prudent decisions regarding any investment in these instruments. Maha Bahu, CBJ’s executive director of payment services, the central bank has sent a letter to all financial institutions in the Kingdom, including banks, currency exchange companies and payment service companies, prohibiting them from dealing with digital currencies, especially Bitcoins.
Bahu disclosed that the central bank has been following the issue of Bitcoin very closely over the past two months.