Will Cryptocurrency Bring Good to Dubai and to its Residents?
Dubai/ Cryptocurrency has surprisingly delivered a huge impact to the global market since it was created in 2009 by Satoshi Nakamoto. It has been adapted and widely used in certain countries as the mode of payment for their day-to-day transactions. Dubai, being the business hub of the UAE has no escape with this famed investment system.
Consecutive meetups, conferences and seminars were then conducted to educate and boost the interest of the residents steering them to support and fund the scheme. Amidst its fast swing, questions are still there lying with one coming from those unaware of it, “What is Cryptocurrency?”
A cryptocurrency is a digital or virtual coin that uses cryptography and was derived from the Electronic cash system first designed by American cryptographer David Chaum. Compared to the current central banking systems and and centralized digital currency, Cryptocurrency is operated by a strong decentralized control program that shields financial transactions and movement of assets. The security feature enables all of the cryptocurrencies to be resistant to any forms of alteration and manipulation attempts. Additionally, several cryptocurrencies are decentralized systems based on blockchain technology, a shared ledger supported by a different network of computers.
The original blockchain-based cryptocurrency was Bitcoin, which remains the most popular and most expensive since its development in January 2009 over 4,000 available altcoins (alternative variants of Bitcoin). It serves the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose real identity has still to be confirmed. Bitcoin grants the promise of lower trade fees than traditional online payment tools and is managed by a decentralized authority, unlike government-issued currencies.
A defining feature of a cryptocurrency, and arguably its greatest allure, is its organic nature; it is not assigned by some central authority, performing it theoretically immune to government intervention or administration. Cryptocurrencies keep the outlook of doing it easier to transfer funds shortly among two parties in a transaction, without the need for a trusted third party such as a bank or credit card company; these transactions are aided by the means of public keys and private keys for security purposes.
Like in most parts of the world, the result and right conclusion of cryptocurrencies in the UAE is still at the opening. The Central Bank of the UAE’s Regulatory Framework for Stored Values and Electronic Payment Systems shows very clearly that “all virtual currencies are prohibited”. However, with the launching of Aber, digital currency of created by the joint agreement of the UAE and Saudi Arabia most recently and the Banks ambition for cashless payments to introduction of digital wallets, there is a weighing chance of Cryptocurrency running legally here in the country soon in the coming future.
