UAE Central Bank Did Right On Virtual Currency
Recently, it is can be noticed that the UAE Central Bank, is taking well and bold thought all through decisions, when it comes to the protection of the financial and banking system against the serious and rapid changes in the global financial system.
Being part of its’ banking polices, the bank has gone on with enhancing its gold reserves, giving. it a safe asset. in a short time, the gold reserves have definitely doubled, taking advantage of the instant decline of the price of the yellow metal meaning making the bank’s basket of reserves stronger on one hand and to achieve significant gains if in case the gold prices improve.
currently, the bank decided bravely in the ban of the use of virtual currencies, more into “Bitcoin” that has spread dramatically, causing price doubling through the fake and virtual transactions that result in customers causing loss incur.
Having an explanation of the reasons for such decision taken, the bank noted it points to safeguarding of its customers from fraud as virtual currencies are unconsidered to deal and are also not built according to central bank’s system, even not being follow-up and subject to supervision, and deemed as a position out for the money laundering.
Although a large number of countries have given permission to the circulation of bitcoin and in also created purpose-built machines, there exist many who realized the risks of dealing with the virtual currencies that do not have existence and might vanish any time, incurring on the currency dealers big losses that might do affect the overall financial system.
The UAE Central Bank took fast action in protecting customers including the financial system in that country, proving its seriousness in the execution of the decision in that it obliged all the banks including those which are foreign, not to deal with the virtual currencies in even the origin country.
They have already announced the risks in dealing with the virtual currencies which have developers and dealers who yet need to be known as a way of buying and selling the virtual currencies are don behind screens within fake transaction lows and highs.
For example, Bitcoin price has risen from 300 dollars to 1,200 dollars and afterward plummeted to under $700. Later, the price increased to 1000 dollars, causing big losses for some of the customers while also giving an advantage to others.
It’s a fact that virtual world has strongly revealed itself in modern times and also deeply affect the social values and also the interaction between people. Resultant consequences vary from one to another domain.
Some of the problems can be overcome easily while the others may result to dumped savings and disadvantaging customers who might not comprehend serious implications of such issues on their future.
When an individual wants to know the one who stands right behind the circulation and issuance of these transactions, they will not proceed, meaning that there exist a hidden authority controlling the market of the virtual currencies and gain great profits at the customers’ expense who are not use to the principles of these transactions.