Cryptocurrency ‘Not Sufficiently Stable to Be a Good Means of Payment’ – Regulation Bitcoin News

People who use or plan to use cryptocurrency should be aware of potential risks, according to the governor of Jamaica’s central bank. The governor added that cryptocurrencies’ unpredictability means they cannot function as a medium of exchange.

Payouts are not secure enough to make them good payment options

Richard Byles is the governor of Bank of Jamaica. He warned people who plan on using cryptocurrencies to keep in mind the volatility of these assets. Byles also said he considers cryptocurrency an investment instrument rather than a medium of exchange because its value is “not sufficiently stable to be a good means of payment.”

Byles made remarks at a conference on digital and cryptocurrency. Byles also stated that crypto is not a viable option for settling payments. He said:

So, if you’re, hopefully, a sophisticated investor [who]If you can comprehend cryptocurrency, then go ahead and start using it. But we don’t see it as a currency that is good for transactions and for making payments.

Central Bank will issue more cautionary statements

The governor stated that the central bank of Jamaica only supports its 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.”

Bitcoin.com News previously reported that Bank of Jamaica declared on December 31st, 2021 that it had completed the testing of their 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.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.