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The Central Bank of Kuwait has requested and caution people about the risks involved in cryptocurrencies. The bank runs a campaign ‘Be Aware’ to make people educate about the high risks involved in crypto assets.
The Central Bank of Kuwait (CBK) has issued a warning statement on crypto assets and the risks involved. Cautioning the people who are dealing in cryptocurrency, the reserve bank aims to enhance financial awareness and intends to educate the public about the risks involved in cryptocurrencies.
Last week when the prices of Bitcoin plummeted, the sentiments of the market saw a price crash. This led all the Central banks of the world to issue warnings about the risks of investing in cryptocurrencies.
Following the suit, Kuwait’s reserve bank issued a statement about volatility in the crypto market and stated that the crypto assets are not real currencies. As per the statement issued, the lawful state can only issue real currency as a symbol of sovereignty.
The real currency is only regulated by the monetary institutions or central banks. It is considered a store of value or legal tender. It is a reliable medium for exchange. As a part of their Diyara campaign, the Central Bank issued the warning. Arabic word Diyara in English means Be Aware.
It is managed by Kuwait Banking Association (KBA) with the participation of all local banking institutions. According to the bank, the executives noticed a significant increase in the investment opportunities in cryptocurrencies. There were several calls coming in for investment and dealing in crypto-assets. The CBK said that such assets cannot be compared to the real currency and hence it should be discouraged.
The CBK further stated in the release that their aim is to protect the real currency and give policies that guarantee the stability of the exchange rate against major world currencies. The bank feels that these cryptocurrencies pose a significant threat to the global financial system. The bank feels that it can dupe people as they carry out illegal wallets or organisations which could lead and direct individuals funds without guarantee of official trading protocols.
CBK has requested other banks to educate the users about the potential risks involved in the cryptocurrencies and take measures to increase clients awareness of the risks like anti-money laundering, frauds in the cryptocurrencies.
The CBK has informed authorities about the issues with dealing in cryptos and also requested them to take necessary steps and measures and increase public awareness of the risks involved in crypto assets.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
