The future of cryptocurrencies have been an interesting discussion in a recent couple of years as technological advancement keeps growing and investments keep rising in Bitcoins – which currently holds 40 percent of the cryptocurrency market. However, there is a high risk in any luxurious business and the risk in trading with cryptocurrencies is beginning to unfold. This year, Bitcoin rose to a $5,000 at some point while gradually running down to $3,000. In UAE, cryptocurrency investors are under threat as the central bank is underway to impede the use of cryptocurrencies as it is noticed as an easy way to engage in money laundering, fraud, and funding terrorist activities.
In UAE, cryptocurrency users and investors are more interested in their Return on Investment (ROI) and also keen in using the currency as it has no government and political regulations, unlike gold and dollar. However, there have been unpromising tractions with the standardization of cryptocurrencies as a formal currency for doing a trade. Globally, there are ongoing structural formulations to pseudo-regulate the use of cryptocurrencies to ensure decent trade.
The central bank in UAE has not formally granted permission for the use of cryptocurrencies as a form of doing a trade. Just this week, governor Mubarak Rashed Al Mansouri in UAE expressed concern and called for careful monitoring of using cryptocurrencies. He said, “Some nations have announced that they are not using bitcoin, and consequently its value sharply plummeted. In addition, it can be easily used in money laundering and in funding terror activities.”
On the contrary, as central banks work on a reform to put a decent structure behind cryptocurrencies, some users are already seeing a dead-end for cryptocurrencies while others a quite optimistic that cryptocurrency is the future and no matter the present tractions being faced by government bodies.