Guyana has a long way to go in modernizing its financial framework before moves can be made to facilitate the use of cryptocurrency. This is the government’s position, as articulated yesterday by Vice President Bharrat Jagdeo.
Cryptocurrency (crypto) is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to maintain it.
As he facilitated an interactive session yesterday at the ongoing energy conference held at the Marriott, Jagdeo was asked if considerations are being made to formulate and implement regulations to facilitate the use of cryptocurrency transactions for cross-border payments and trade.
The Vice President responded in the negative, citing prematurity as the main reason.
He told participants, “We had the central bank (Bank of Guyana) do some work on crypto and look at its introduction, but I don’t think we are ready at this time to go any further until we have done a major financial overhaul.”
Jagdeo, a former Minister of Finance, said that the financial sector in Guyana can become a humbug and slow down the massive growth being experienced in the real sector if it doesn’t expand in complexity and instruments. “That is why we are trying to drag it out of the Stone Ages into an environment that is appropriate to support the expansion in the real sector. Once we get to that level of complexity, then we can look at things like crypto, provided the appropriate safeguards are found and instituted.”
While that overhaul is needed, Jagdeo also noted that it is not imminent, as the government has its hands full with other priorities at the moment.
Jagdeo said that Guyana is far behind the rest of the world in several areas. “Right now, we are doing several projects; we are digitizing the government.”
He noted that within a few months, Guyana’s airport will go paperless. “We have started mounting cameras right across the country. We have started doing that with software for facial recognition that will have a big impact on security.”
Jagdeo added that his government is also pursuing the implementation of IDs for Guyanese that will broaden the range of instruments to be used for official transactions. “So, we have our hands full.”
