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IMF Country Report No. 23/95
JORDAN
TECHNICAL ASSISTANCE REPORT-HIGH LEVEL SUMMARY REPORT––RETAIL CBDC EXPLORATION
February 2023
This High Level Summary report on Jordan was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in December 2022.
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Title page
SUMMARY TECHNICAL ASSISTANCE REPORT
JORDAN
Retail CBDC Exploration
December 2022
Prepared By
Natsuki Tsuda (Mission Chief, MCM) and Marianne Bechara (LEG), Stephanie Forte (LEG), Kathleen Kao (LEG), Shuji Kobayakawa (STX), Ashley Lannquist (ITD), and Frankosiligi Solomon (ITD)
PARTNERS: The Government of Japan
DISCLAIMER
The contents of this document constitute a high-level summary of technical advice provided by the staff of the International Monetary Fund (IMF) to the authorities of Jordan (the “CD recipient”) in response to their request for capacity development. Unless the CD recipient specifically objects within 30 business days of its transmittal, the IMF will publish this high-level summary on IMF.org (see Staff Operational Guidance on the Dissemination of Capacity Development Information).
2023 International Monetary Fund HLS/23/95
Summary Technical Assistance Report
Monetary and Capital Markets Department
Retail CBDC Exploration
Prepared by Natsuki Tsuda (Mission Chief, MCM) and Marianne Bechara, Stephanie Forte, Kathleen Kao, Shuji Kobayakawa, Ashley Lannquist, and Frankosiligi Solomon (MCM, ITD, LEG).
The Summary Technical Assistance Report series provides high-level summaries of the assistance provided to IMF capacity development recipients, describing the high-level objectives, findings, and recommendations.
ABSTRACT: The International Monetary Fund (IMF) analyzed th e 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 integrate d, enabling customers to make interoperable transactions between banks and non-bank Payment Service Providers (PSPs).1 T he 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 be fore forging ahead. Meanwhile, the CBJ should develop capacity to address technology, cybersecurity, financial integrity, and legal issues.
We wish to thank the Government of Japan for the fun ding of this capacity development work through the Japan Subaccount for Selected IMF Activities (JSA).
| JEL Classification Numbers E42, F24, G21, G23 |
| Keywords: central bank digital currency, CBDC, distributed ledger technology, noncash payments, payment system, central bank, remittances, mobile banking, financial intermediaries |
| JEL Classification Numbers E42, F24, G21, G23 |
| Keywords: central bank digital currency, CBDC, distributed ledger technology, noncash payments, payment system, central bank, remittances, mobile banking, financial intermediaries |
Throughout this report, we use PSPs to refer to non-bank Payment Service Providers.
