High-Level Summary Technical Assistance Reports

Jordan: Retail Central Bank Digital Currency Exploration

Author/Editor:

Natsuki Tsuda ; Marianne Bechara ; Stephanie Forte ; Kathleen Kao ; Shuji Kobayakawa ; Ashley Lannquist ; Frankosiligi Solomon

Publication Date:

February 23, 2023

Electronic Access:

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Summary:

The International Monetary Fund (IMF) analyzed the retail payments markets of Jordan to identify pain points that retail Central Bank Digital Currency (rCBDC) could address. Retail payment systems in Jordan are highly integrated, enabling customers to make interoperable transactions between banks and non-bank Payment Service Providers (PSPs).1 The country’s cross-border remittance market is competitive, but may benefit from the reduced transactions cost associated with rCBDC. Despite generally accessible and appropriate product offerings and an enabling environment, various barriers prevent customers from extensively using digital means of payment. rCBDC might create an opportunity to overcome these barriers, thus making a cross-border rCBDC worth consideration. However, the Central Bank of Jordan (CBJ) should rigorously evaluate benefits against risks and costs before forging ahead. Meanwhile, the CBJ should develop capacity to address technology, cybersecurity, financial integrity, and legal issues.

Series:

High Level Summary Technical Assistance Report No. 2023/001

Subject:

International organization Monetary policy

Frequency:

Regular