In any case, cryptocurrencies have been scoring lately. The United Arab Emirates have announced that they will launch a digital currency within five years! Several central banks around the world recently announced similar plans while also criticizing decentralized cryptocurrencies like Bitcoin. The central bank will “issue a virtual currency and work towards the digital transition of the Emirates’ financial services,” according to a statement released by the official WAM agency.
This announcement is part of its “2023-2026 strategy” which aims to “place it among the top 10 central banks in the world,” she added. In 2019, Saudi Arabia and the Emirates announced a trial of a common cryptocurrency for transactions between banks in two countries. The Emirates regularly flaunt their technological ambitions, notably Abu Dhabi, the capital, and the city-state of Dubai, a financial hub with the most diversified economy in the region.
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The country has invested in artificial intelligence technologies, launched a space program and is home to the regional headquarters of large digital multinationals. The race to create digital currencies by central banks was launched by China in March when it began testing its digital yuan. The central banks of the United States, the European Union and England are also exploring the possibility of launching their own digital currencies.
By launching digital currencies, these public institutions claim to want to bring stability to this highly speculative sector. Bitcoin, by far the largest asset in the cryptocurrency market, was created in 2008 to counteract the abuses of global finance following the financial crisis and has steadily attracted institutional investors as well as individuals.
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But its price is experiencing upheaval after hitting highs this year amid Chinese efforts to regulate that market.
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