The Extent of The Jordanian Legislator's Recognition of Electronic Money "A Comparative Study"

Abstract

Electronic money is like traditional money and is considered a form of payment. Electronic money differs significantly in terms of form while sharing the same essence. Electronic money possesses several characteristics, such as ease of use and a wide use range. And there are various risks associated with its usage, such as vulnerability to theft and loss. Regarding the issuance of this money, the Jordanian legislator has exclusively entrusted the Central Bank of Jordan with its issuance and monitoring. It is a currency stored electronically on websites, electronic systems, or dedicated digital databases. This definition contrasts with the concept of traditional tangible currency. It's worth noting that the value of electronic money is backed by legal tender. It was a characterized by several advantages, including flexibility in making payments anywhere and anytime, confidentiality in concealing the person’s identity, and reliability through the ability to obtain a record detailing all financial transactions conducted during the required period. Additionally, it provides security in transactions, reducing the risk of loss. However, another part of the issue with electronic money lies in its novelty regarding the identification of the legal framework governing it and the extent of recognition by the Jordanian legislator of this type of currency through establishing a legal framework for dealing with electronic money. And to address this issue, it relied on the comparative method to study the legal adaptation of electronic money and its characteristics. It also employed the analytical method to identify legal problems and determine the comprehensive legal system. It became clear to us that the Jordanian legislator has assigned the task of issuing electronic money exclusively to the Central Bank, which in turn is responsible for releasing an electronic payment and transfer system and regulating the mechanism for dealing with electronic money and the licensing mechanism for certain entities under the supervision and control of the Central Bank. The researcher concluded that the Jordanian legislator must strengthen the role of the Central Bank of Jordan to enable it to effectively carry out its supervisory functions, enhance oversight, and reinforce methods that help detect money laundering operations.