The governor of the Jamaican central bank has issued a warning to those who are using or planning to use cryptocurrencies to be aware of the risks involved. The governor went on to say that the unpredictability of cryptocurrencies means they can’t be used as a medium of exchange.
Richard Byles, the governor of the Bank of Jamaica, has warned those who use or plan to use cryptocurrencies to be wary of the volatile nature of the assets. Because the value of cryptocurrency is “not sufficiently stable to be a good means of payment,” Byles considers it an investment instrument rather than a medium of exchange.
Byles, who spoke at a digital and cryptocurrency conference, said the Jamaican central bank takes time to warn people about the volatility of privately issued digital currencies, according to remarks published by the Jamaica Information Service (JIS). He also stated that his organization does not believe cryptocurrency is a good way to settle transactions. He added:
So, if you’re, hopefully, a sophisticated investor [who] can understand cryptocurrency, go ahead and use it. But we don’t see it as a currency that is good for transactions and for making payments.
According to the governor, the Jamaican central bank only backs its central bank digital currency (CBDC). He also emphasized that, unlike cryptocurrencies whose value can either go up or down, “a dollar that you have in your pocket today is the dollar that you have in your pocket tomorrow.”
As previously reported by Bitcoin.com News, the Bank of Jamaica announced on December 31, 2021, that it completed testing of its CBDC. Following the completion of this phase, the bank is now spearheading the implementation of Jamaica’s CBDC, the JIS report said.
Meanwhile, Mario Griffiths, the bank’s director for payment systems and policy, is quoted in the same report stating that the Bank of Jamaica plans to continue issuing cautionary statements that warn people of the risks that are associated with cryptocurrencies.