The Jamaica stock exchange (JSE) has resolved to soon begin trading cryptocurrencies. Using cryptocurrencies as trade-able assets for clients means less dependence on the local currency and economic system. This insulation can help the economy flourish without choking on instability and hyper inflation(common in neighboring regions).
The organization said Tuesday that it had signed a memorandum of understanding (MoU) with blockchain startup Blockstation. This pairing will result in the creation of a new digital assets trading platform specially crafted and tailor made for the Jamaican specifications. While the decision on which tokens will be initially listed is still pending, the platform is set to go live by the end of the year.
In an interview, JSE managing director Marlene Street Forrest highlighted that offering cryptocurrencies as investment products fits in with the equities, bonds and other investment products that the exchange already offers. Forrest said:
The end game at the end of the day is to trade tokens, the end game is smart contacts, the end game is to provide that area of the market that would like this product, to start to do so in a secure manner.
Blockstation is providing the technology required for the trading platform and network. Meanwhile the JSE’s infrastructure will be networked to the new platform, allowing handpicked, suitable and equipped investors to conduct purchases or trades in the crypto domains.
Apart from listing cryptocurrencies for trade, Street Forrest announced that the stock exchange will continue to expand from the small starting point towards bigger ways to use blockchain technology to help benefit the larger economy and similar platforms in the region.This ecosystem is likely to help its clients build an ecosystem that the nation is currently missing. Hopes are so high that JSE’s plans may include issuing its own cryptocurrency at some point in the future. She said:
The environment changes, the entire ecosystem changes, so at that point in time that might be the case, [although] at this point in time that is not a discussion.
Blockstation co-founder and chief enterprise architect, Jai Waterman, said that the startup has been working with the JSE for approximately six months. This blood and sweat has been invested in order to develop a custom version of its platform for the exchange.
The customization makes the product adaptable based on the environment and state of the nation. Specific requests from the JSE have included tools to track market manipulation and other regulatory needs, he identified.
Our mission is to provide a secure method of trading cryptocurrencies with broker-dealers and stock exchanges
We’re providing the stock exchange the technology for a broker-dealer network and repository, so that from end-to-end, their life cycle of trading – just like with securities – they can do the exact same thing with blockchain and cryptocurrencies.
The JSE is taking things slow, allowing the technology to make way for itself. The need for newer technologies and up-gradation is imperative if the economy is to compete in the international grounds ever, however, it is taking its time to ensure that the launch is safe for investors and future traders. She explained:
We have a steering committee that was designed and formulated to look at the Blockstation product, to look at the blockchain technology in general and to go through the phases to ensure that we understand what we are getting involved with and are also trained in what this entire trading of cryptocurrency involves.
As such, she said, the exchange’s integration of blockchain will be “gradual.” The hare and tortoise like situation is being moderately dealt, the Jamaican Stock Exchange is playing with risk in a highly safe manner. The juggle, if presented right can help steer the investor circles to prosperous routes.