Jordan Advances Towards Retail CBDC with IMF Support

Jordan's Progress Towards a Retail CBDC

The Central Bank of Jordan is making significant strides towards launching a retail central bank digital currency (rCBDC). This development follows the completion of a technical report by the International Monetary Fund (IMF), which evaluated the country's financial market infrastructure.

IMF's Technical Report Findings

The IMF conducted a three-month mission from July to September 2022 to assess Jordan's readiness for a CBDC. The resulting report, released on February 23, highlights the country's well-integrated retail payment market. This comprehensive evaluation is a critical step in determining the feasibility of implementing a CBDC in Jordan.

Key Features of Jordan's Payment Market

The IMF report praised Jordan's existing retail payment system. It noted the presence of two non-bank payment service providers (PSPs) that offer generally accessible and suitable products for consumers. Furthermore, the high penetration of smartphones in Jordan supports the potential for digital currency adoption, as it facilitates access to digital financial services.

Implications for Jordan's Financial Future

As Jordan moves closer to introducing a retail CBDC, the country stands to enhance its digital payment landscape. The successful integration of a CBDC could streamline transactions, improve financial inclusion, and foster economic growth. With a strong foundation already in place, Jordan is well-positioned for this digital transformation.

The Central Bank of Jordan's proactive approach, supported by the IMF's insights, underscores the nation's commitment to advancing its financial system. By leveraging existing infrastructure and addressing any potential challenges, Jordan aims to ensure a smooth transition to a digital currency future.