My Thoughts on Technology and Jamaica: Why JSE and Blockstation partnership heralds GOJ Cryptocurrency by 2030

Sunday, August 19, 2018

Why JSE and Blockstation partnership heralds GOJ Cryptocurrency by 2030

“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. 

Google Logo

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.

Google Logo

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.

Google Logo

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.

Google Logo

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
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.

Google Logo

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.

Google Logo

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.

Google Logo

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”.

Google Logo

Jamaicans, by 2030, may be using a BOJ backed Mobile Money platform powered by a blockchain based cryptocurrency Network.

Google Logo

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.

No comments: