Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper presents high-level summary technical assistance report on Jordan’s Retail Central Bank Digital Currency Exploration (rCBDC). Retail payment systems in Jordan are well integrated, enabling customers to make transactions between banks and PSPs through JoMoPay and CliQ. The cross-border remittance market is populated by many service providers. The mission explored three policy objectives that a potential rCBDC may help achieve, namely, financial inclusion, domestic payment improvement, and cross-border payment improvement. If the CBJ pursues further work on rCBDC, it should rigorously evaluate benefits against risks and costs. It should also consider the best non-CBDC solutions to address pain points and compare the merits, risks, and costs of rCBDC against those of alternatives. It is recommended to enhance capabilities to protect critical payment infrastructure, including establishing a 24/7 Securities Operations Center for the financial sector. Based on the decisions on the design and use cases, the Central Bank of Jordan should assess the existing legal framework to evaluate: the readiness for the issuance of an rCBDC; and the need for any required legal amendments.

Money and Monetary Policy --- International Economics --- Monetary Policy --- International Agreements and Observance --- International Organizations --- Monetary economics --- International institutions --- Monetary policy --- International organization --- International agencies --- Jordan

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Digitalization of the economy provides both challenges and opportunities. Central banks should ensure that they have the capacity to continue to meet their policy objectives in the digital age. It is in this context that central bank digital currency (CBDC) should be evaluated. If designed appropriately, CBDCs could allow central banks to modernize payment systems and future-proof central bank money as the pace and shape of digitalization continues to evolve. However, the decision to proceed with CBDC exploration and an eventual launch would need to be jurisdiction specific, depending on the degree of digitalization of the economy, the legal and regulatory frameworks, and the central bank’s internal capacity. This paper proposes a dynamic decision-making framework under which the central bank can make decisions under uncertainty. A phased and iterative approach could allow central banks to adjust the pace, scale, and scope of their CBDC projects as the domestic and international environment changes.

Banking --- Banks and Banking --- Banks and banking --- Banks and banking, Central --- Banks --- Central Bank digital currencies --- Clearinghouses --- Commercial banks --- Currencies --- Depository Institutions --- Distributed ledgers --- Economic & financial crises & disasters --- Economic sectors --- Economics of specific sectors --- Economics: General --- Finance --- Finance: General --- Financial institutions --- Financial markets --- Financial services industry --- General issues --- Government and the Monetary System --- Industries: Financial Services --- Innovation --- Intellectual Property Rights: General --- Macroeconomics --- Micro Finance Institutions --- Monetary economics --- Monetary Policy, Central Banking, and the Supply of Money and Credit: General --- Monetary Systems --- Money and Interest Rates: General --- Money and Monetary Policy --- Money --- Mortgages --- Payment Systems --- Payment systems --- Publicly Provided Goods: General --- Regimes --- Research and Development --- Standards --- Technological Change --- Technological innovations --- Technology