Bitcoin News – UAE Central Bank Governor Warns Against The Usage of Cryptocurrencies As A Medium of Payment
November 2, 2017 12:10 pm
Mubarak Rashid al-Mansouri, UAE central bank governor, has warned the public against the use of cryptocurrencies as a medium of exchange.
He explains that virtual currencies impose risks to the public as they can be used for such illegal activities like money laundering as well as terrorist funding activities.
As per a Gulf News report, al-Mansouri told that the risk of trading virtual currencies is real as seen in the sharp decrease in their prices following the declaration of a ban on ICOs (initial coin offerings) by many countries. He made a statement while he was delivering a speech at the Islamic Financial Services Board Summit in October 2017.
“The risks of trading in virtual currencies have appeared when the prices of cryptocurrency decrease sharply after some nations declared a ban on using ICOs.”
Attempts to control cryptocurrency usage
The statement delivered by the UAE Central Bank governor shows the positions of other regulators all over the world who hope to oppose the use of digital currencies such as Bitcoin, Ethereum. Many countries have already issued a ban on initial coin offerings that is a form of fundraising through digital currencies.
In the UAE, the central bank rejected many proposals to issue licenses for the virtual currencies’ trading in the nation. This has restricted the cryptocurrency exchanges to propose with their services domestically.
In his statement regarding the developments, the head of asset management at the Emirates Investment Bank said that digital currencies are highly speculative.
“The virtual currencies are truly speculative, and this is not supported by anything tangible.”