“We
are also proud to be at the forefront of bringing innovation to capital
markets. We are very comfortable moving forward based on the training and
support provided by Blockstation, and because their trading platform
incorporates familiar compliance rules to ensure a fair marketplace”
JSE Managing Director
Marlene Street Forrest commenting on their latest MOU signed with Blockstation
to look into cryptocurrency trading
Jamaican,
the Cryptocurrency revolution is coming to Jamaica thanks to the JSE (Jamaica
Stock Exchange).
They
are currently in talks with Toronto-based fintech company Blockstation to do
local cryptocurrency trading as reported in the article “Jamaica
Stock Exchange Exploring Cryptocurrency Trading”,
Published Sunday August 19, 2018, The
Jamaica Gleaner.
There
is considerable investor interest in cryptocurrencies. To this end, the JSE has
signed a MOU (memorandum of understanding) to pave the way for future
collaboration on such a venture.
In
fact, as far back as April 2017, they had signed another MOU with Veritaseum
LLC to look into the possibility of doing cryptocurrency trading as noted in
the article “JSE
looks to introduce blockchain technology”, published Wednesday,
August 09, 2017 by Karena Bennett, The Jamaica Observer.
So what does the Bank of Jamaica (BOJ), who
regulates foreign exchange, electronic payments and mobile money, have to say
about this?
BOJ and cryptocurrency
- A Quick introduction as the BOJ moves slowly
So
far they've been silent, albeit thy made comment on the potential benefits of
cryptocurrencies as a\far back as 2017 as noted in the article “BOJ
seeking to build awareness on cryptocurrency”, published
Thursday, August 17, 2017, The
Jamaica Observer.
This
was a few months before the price of Bitcoin jumped to US$20,000 per coin due
to trading speculation.
Since
then the coin has been losing value and its speculative unstable nature has led
the BOJ to change its tune and declare them as unsafe as stated in the article
“BOJ
warns against use of virtual currencies for economic transactions”
published Monday, February 05, 2018, The Jamaica Observer.
Apparently,
they fear its potential to do unregulated transfers of large sums of money
abroad.
This
could potentially enable criminals as well as Americans trying to relocate
illegally to avoid FATCS to launder their money into locals banks as predicted
in my blog
article entitled “How
Americans becoming Jamaican citizens can evade IRS and FATCA Taxation”.
For
those new to cryptocurrency, a quick primer on them as well as Blockchain
technology can be read at my MICO Wars
article entitled “How
Jamaicans can purchase Bitcoin cryptocurrency as Gracekennedy and WU supporting
Ripple”.
The
BOJ silence on the issue has not dampened the local Fintech scene, who eye Cryptocurrency
as the way forward.
JSE and Blockstation -
Bitcoin trading and mining in the mix
Already
they've done a workshop with Blockstation.
JSE may become the first international Stock Exchange to do digital currency and token trading platform, with Blockstation performing the following services in a format that aligns with current regulatory and compliance standards:
1. Trading
2. Quotes
3. Execution
and settlement services
The
Canadian company's main software is called Smart ECN (electronic communication
network). They also offer a suite of technology products designed to meet the
security, liquidity and regulatory requirements of their clients and
potentially the BOJ.
The
BOJ is right to be caution, especially as it was with Mobile money, a space now
dominated by Quisk and GK MPay as noted in my Geezam
blog
article entitled “JCCUL
Shutters CONEC Mobile Wallet, leaving Quisk and MPay in the Race”.
So
while the BOJ tittles its thumbs on Cryptocurrency as it did with Mobile Money,
JSE is innovating to meet rising demand for digital asset investing and thus
make the world a better place.
JSE and Cryptocurrency –
GraceKennedy may use cryptocurrency for GK MPay
Still,
this has not stopped local company GraceKennedy from looking into using the
underlying Technology in cryptocurrency to power their Western Union Remittance
Network.
They
may potentially be using it to power their Mobile Money platform, GK MPay as predicted
in my Geezam blog
article entitled “GraceKennedy’s
Innovation Lab planning to launch a GK MPay cryptocurrency”.
Head
trader at brokerage house, Sagicor Investments Jamaica Limited, Kirk Brown, is
excited but cautious, as investors money is on the line, quote: “It is very
important for investors to be able to invest in digital assets through their
traditional financial institutions....It's exciting to be at the cutting edge where
digital currency demand meets safe reliable access”.
JSE and Cryptocurrency
- Trading and Mining with GOJ crypto-based Mobile Money
JSE
is now in the race, as they realize that Blockchain, which is use to verify
each transactions between bitcoin wallets and thereby build trust in the
system, means that transaction can be done securely.
Thus
it should be possible in principle to use Blockchain technology in
cryptocurrency to mediate large transactions of cash to purchase traditional
stocks and bonds on struck markets abroad, but at significantly lower costs.
Also,
the JSE can also engage in cryptocurrency trading and even in Cryptocurrency mining,
where they could set up their own servers or even buy computing power on
established bitcoin miners to mine bitcoin on behalf of investors.
The GOJ and
Cryptocurrency - Mobile Money Cryptocurrency Network by 2030
Ultimately,
the Government of Jamaica may even replace our current paper-based fiat
currency system with cryptocurrency.
This
is the move being made by the Bahamas Government to replace their fiat currency
with a national Cryptocurrency as noted in my Geezam
blog
article entitled “The
Bahamas Blockchain will be a Digital Paradise for FinTech start-ups”.
Jamaicans,
by 2030, may be using a BOJ backed Mobile Money platform powered by a
blockchain based cryptocurrency Network.
This
would effectively make all transactions electronically, thereby eliminating
corruption and making taxation easier as noted in my blog
article entitled “How
Electronic Transactions in Jamaica can eliminate Hidden Economy via Universal
Consumption Taxation”.
This
is the long terms outlook. But right now, it is one block at a time as we climb
the blockchain towards cryptocurrency adoption in Jamaica.
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