Digital currencies aren’t real currencies, are highly risky and they pose a threat to the global financial system, the Central Bank of Kuwait has warned.
Kuwait , Kuwait
28 May 2021, 12:00 AM
30 June 2021, 12:00 AM
In a recent statement, Central Bank of Kuwait cautioned Kuwaiti citizens against investing in digital currencies, reminding them that these currencies are unregulated, and they could end up losing all their money.
Acknowledging the spike in popularity of digital assets, the bank warned “that such assets can in no way be compared to real currency.” ‘Real currency’ is issued by a monetary authority and is a symbol of sovereignty, the bank added.
The warning by the CBK was part of its Diraya campaign, which translates to ‘Be Aware Campaign.’
The apex bank has partnered in this campaign with the Kuwait Banking Association and all Kuwaiti banks to raise financial awareness in the country.
It stated, “The CBK therefore cautions against dealing in crypto-assets, such as Bitcoin, Ethereum, Dogecoin, etc. Such dealings come at a high risk and with an array of negative consequences for dealers in view of the nature of these assets and the high fluctuation in their prices.”
While Kuwait urges caution, other Middle Eastern nations have wholly embraced digital currencies. The UAE has been among the leaders in adoption. On Monday, the Dubai Multi Commodities Centre announced the launch of the DMCC Crypto Centre. This is an ecosystem seeking to promote the growth of businesses that operate in the digital currency and blockchain sectors.