Banning virtual currency in UAE

One of the few things that has become noticeable is the bold step the UAE Central Bank is taking. It goes along with well thought decisions especially in areas such as protecting the banking and financial system against the rapid as well as serious changes that take place in the global financial system.

As part of polices, the bank continues to enhance its gold reserves (deeming it a safe haven asset). It has been noted that the gold reserves have doubled up in a short time thus taking advantages of sharp decline in the price of the yellow metal. On a logical sense, this means strengthening the bank’s overall reserves one a particular point and achieving significant gains on another.

Recently, the bank took a major decision in banning the use of all virtual currencies except “Bitcoin”. This has drastically spread, causing prices to double through virtual and fake transactions that result in customers incurring grave losses.

As an explanation of the reason behind such decision, the bank noted that it aims to safeguard customers against fraud as virtual currencies are unsafe to deal and are not created according to the central bank’s system.

Many countries have allowed the circulation of bitcoin which in some cases created purpose-built machines. However, there are many who recognise the risk dealing with virtual currencies (which has no existence and may vanish at any time).

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