Central Bank of Kuwait released a warning statement against crypto investments
“The real currency is regulated by state authorities such as central banks or monetary institutions. It is considered and accepted as a store of value and legal tender. It serves as a reliable medium for exchange.”
Due to the recent collapse of the cryptocurrency market, many institutions worldwide have doubts about the legitimacy of these currencies. Although, there are specific countries that have closed their doors to digital tokens even ages ago. Turkey banned crypto payments, while India continues to threaten a ban. We also have Nigeria and Algeria who show disagreement to internet money.
In spite of the fact that Bitcoin, Ethereum or Dogecoin have already dominated the minds of technophiles, prominent figures and even a normal citizen who wants to dig money out of mining, there are still areas that are faithful to their words — “No to cryptocurrency”.
A recent statement from the Kuwaiti Ministry of Finance states that they do not recognize cryptocurrencies for trans official commercial purposes. The entity holds a big influence on its nation. It was seconded by the Central Bank of Kuwait, it forbids the banking sector and companies under its control from trading in cryptocurrencies.
On Saturday, CBK issued a warning statement against crypto-assets and their risks. This comes as part of the CBK-supervised “Diraya” or “Be Aware” campaign, managed by Kuwait Banking Association (KBA) together with all Kuwaiti banks. Diraya aims to raise awareness about financial issues and encourage social responsibility activities through the Kuwaiti banking sector.
The statement emphasizes that there will be no other currencies to recognize apart from the real currency released by the government. Crypto enthusiasts in the country must expect more tighter policies for investing in the digital currencies. Amid the notable increase in promotion of and calls for investment and dealing in crypto-assets, CBK will remain true to its stance against cryptocurrencies.
Perhaps now is not the time for cryptocurrency to flourish in such a country. It seems there is still a long way to go before the whole world accepts it fully.
The position that cryptocurrency holds in society is debatable up to this stage. While different networks have been developed for the use of the masses, the States strive to protect their real currency and employ policies that guarantee relative stability of the exchange rate against major world currencies.
I personally understand both sides, thus, there should be a figure that will represent the idea of cryptocurrency every time a conversation comes on. In that way, the digital token could be legally presented to the public.