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Unemployment Crisis In Jordan: Thousands Turn To Crypto

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Many young Jordanians have turned to the crypto sector as job opportunities dwindle in Jordan.

Jordan’s Unemployment Crisis And Crypto As The Best Solution

The latest world bank data on unemployment revealed that the unemployment rate in Jordan is 50%. The local news outlet, Labor Watch, revealed that more than 145K employees lost their jobs last October as a result of the coronavirus pandemic. Data from local crypto payment platform, Triple A, shows that nearly 140,000 Jordanians are crypto traders.

Thus, it is no wonder that Ahmed Al-Hindi, a young accountant in Jordan, is taking crypto trading lessons to start investing in the highly volatile industry. Al-Hindi revealed that his trading portfolio currently stands at $12K, and he makes $2K profits on some months. But there are months he doesn’t make anything at all. 

According to Al-Hindi, his lack of English proficiency is his reason for having zero profit months. He further said that most of the crypto news that forms the basis he makes his trade decisions are written in English.

Ban On Cryptos Still Effective – Jordan Central Bank Governor

Jordan’s central bank governor, Ziad Faris, reiterated that crypto-related activities are still outlawed. Jordan authorities justified their crypto ban citing huge volatility of the crypto market, exchange instability, fraudulent transactions by hackers, and lack of investor protection. 

Also, any victim of crypto-related fraud cannot seek any redress in the court of law as there is no regulatory framework for doing so.

A former chairman of the association of Jordanian banks, Mufieh Aki, claims that “crypto investment is a fruitless effort and is no different from gambling. Anyone engaging in it does so because he lacks the knowledge or information to invest in profitable opportunities.” 

He further states that “we need to educate our young ones that there are companies who lure people into fraud through these digital currencies.”

Jordan Crypto Landscape

Jordanians have been forced to devise creative means in engaging in the crypto market following the ban. They purchase cryptos using international brokers or pay the equivalent fiat currency to holders who transfer the digital asset to them. 

A foreign exchange specialist claimed that despite the ban, the lawmakers are still making some observations regarding the market and might lift the ban once they devise a means of controlling crypto activities in the country. 

The analyst further claimed that “the crypto industry is a unique chance for the authorities to release regulatory guidelines that allow it to earn from taxes and other crypto-related businesses.” An economic analyst, Hussam Ayesh, claimed that “most Jordanians are turning to crypto because they have the technological prowess and seek more income without increased effort.”

Ayesh further said, “the infrastructure to earn huge amounts is available. For instance, the GameFi space is an already-laid infrastructure for any young, technically gifted person to earn digital coins. Also, others trade the crypto markets to make a living and no longer have to rely on a regular job.”

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