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There is a need for a legislative aspect of digital currencies in the UAE.
Sami Al Riyami
reyami@emaratalyoum.comsamialreyami
July 18 2021
It is now difficult to ignore the existence of digital currencies, and it is very difficult to criminalize and prevent them, and I never think that the appropriate solution lies in preventing and criminalizing, or stopping transactions completely, and never recognizing the existence of digital currency by our Central Bank!
On the contrary, all the current indicators, and previous experiences, necessitate that we deal with any new and technical emergency in a rational manner that is closer to acceptance, with setting controls, rather than rejection and prevention, so it is more appropriate today to start working on developing a strong regulatory and legislative environment, preparing for applications “Blockchain” is used in all aspects of life, especially financial transactions and digital currencies.
The world now contains cryptocurrencies, as a new reality, and cryptocurrencies are issued from private encrypted wallets, which do not follow countries and use “Blockchain” technology, while digital currencies are divided into two types, digital currencies issued by private parties, and linked to monetary currencies, such as linking the currency unit. One dollar, and the second type is digital currencies issued by central banks, pegged to the national currency.
Cryptocurrencies have developed significantly and remarkably in recent years, and statistics indicate that there are currently 10 million users of digital wallets, with a total assets of more than $100 billion!
Recently, for example, the “Visa” company began dealing with encrypted wallets to open the field of payment by “Visa” card, and today the company deals with 54 encrypted wallets in the world, and opened purchases from 70 million merchants in the world, and a fund that invests In the “Bitcoin” in the Dubai World Market, and not only that, but there is a country like El Salvador that recognized it as a currency, and Uruguay is also going the same way, and there is talk about “Gulf” banks adopting the “Ripple” currency in remittances, which means that the idea of rejecting Cryptocurrencies are not true at all!
Therefore, it is better now to work on the development of legislation and laws that regulate trading in digital currencies, in a way that attracts global platforms, and ensures the legality of their transactions away from any suspicions related to money laundering, terrorist financing, or prohibited trade, and it is necessary to see the experiences of developed countries in this regard. Understand how things are going in preparation for the future.
Central banks around the world are preparing to launch their own digital currencies, but this will not prevent the existence of the current currency market “Bitcoin” and its sisters, because many of them are behind real and large projects, just like the stock market and what it reflects from real companies.
Now technology companies and small and medium-sized companies looking for financing resort to mining a digital currency and offering it for subscription, then listing on global platforms, just as happens in stock markets, and there are financial budgets that publish financial analyzes and forecasts, based on performance, meaning that the market is not gambling!
The UAE is a proactive country, and it has great technical capabilities. These capabilities are waiting to be completed by the strong legislative and regulatory aspect, and this is what we hope the Central Bank will undertake.
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reyami@emaratalyoum.com