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JAM | Jun 18, 2021

Scotia Group Jamaica will not be looking to cryptocurrencies as a business arm -Tugwell-Henry

Al Edwards

Al Edwards / Our Today

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President and CEO of Scotia Group Jamaica, Audrey Tugwell-Henry. (Photo: Contributed)


The growing popularity  of cryptocurrencies, and in particular Bitcoin, has seen many finance houses looking to them as a business arm and a way to monetise the digital age.

Scotia Group Jamaica recently reported net income of J$4.5 billion for the six-month period ended April 30, 2021, a 12 per cent jump on last year’s figure for the same period.

So, with the likes of Elon Musk championing Bitcoin, as well as Barclays and Goldman Sachs going down the cryptocurrency route, will Scotia Group be following suit?

Addressing a media briefing to go over its financial performance, Scotia Group Jamaica President and CEO Audrey Tugwell-Henry was succinct on the matter.

“The short response is, ‘no’; we are not looking at cryptocurrency. That’s not an area of focus for us at all. We don’t want to make a comment about the merits or demerits of cryptocurrencies, except to say we are not planning to be involved in that area,” said the Scotia Group Jamaica boss.

Tugwell-Henry is determined to grow Scotia’s existing business lines and stick to core business where it has 130 years of  history in Jamaica.

Sagicor Jamaica’s stance is to embrace digital currencies and believes it has a future in Jamaica

Christopher Zacca, CEO of Sagicor Group Jamaica.

Speaking on digital currencies earlier this year, CEO of Sagicor Group Jamaica Christopher Zacca said: “The piloting of a digital component of the Jamaican dollar has our full backing at Sagicor. This currency is no different to a piece of paper with $100 or $1,000 written on it, but what it does is make the production and distribution and control of the currency easier, cheaper and more efficient.

“It also addresses the issue of inclusivity within the financial sector and allows people with phones to access currency much easier through technology.”

Last week, El Salvador was all set to replace the US dollar with Bitcoin as legal tender.

President Nayib Bukele extolled the virtues of digital currencies, particularly for remittance purposes.

But El Salvador, in the middle of a loan negotiation with the International Monetary Fund (IMF) for US$1 billion, has now decided not to replace the US dollar with Bitcoin as legal tender.

That country’s finance minister, Alejandro Zelaya, has emphatically told the IMF that his country will be sticking with the US dollar.

On June 17, a World Bank spokesperson said: “The Government of El Salvador did approach us for assistance on Bitcoin. This is not something the World Bank can support, given the environmental and transparency shortcomings.”

Twenty years ago El Salvador abandoned its own currency in favour of the Greenback.

Jamie Dimon, CEO of JPMorgan Chase & Co (File Photo: REUTERS)

CEO of JP Morgan Jamie Dimon, speaking on cryptocurrencies, once said: “The currency of a country is a fiat currency backed by the Central Bank. Governments like to control their currency. They like to know who has it. Where is it going?

“Right now Bitcoin is a novelty. Cuba, Venezuela, criminals, drug money are use cases and are pushing for it. They prefer crypto to money in the bank and it is easy to see why.”

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