Central Bank Of Kuwait Issues Warning Against Crypto Volatility.
2021-05-24 | Eddy Morgan
Last week’s market-wide price crash caused central banks
around the world to issue warnings about the risks of investing in crypto assets.
The central bank of Kuwait was no exception, and on Saturday, it issued
a press release to warn
the general public about volatility in cryptocurrency markets.
The central bank of Kuwait explained that crypto assets
aren't real currencies as they're commonly called cryptocurrencies.
Consistent with the statement, only a lawful state can issue real currency as
a logo of sovereignty:
“The real currency is regulated by state authorities
like central banks or monetary institutions.
it's considered and accepted as a store of value and legal
tender. It
is a reliable medium for exchange.”
The statement added that Dogecoin [DOGE] among
the foremost prominent cryptocurrencies by
market capitalization, Bitcoin [
BTC] and Ethereum [
ETH]. Dogecoin
is understood for its meteoric rise earlier this year following Elon Musk’s repeated mentions of the meme-originated coin on social media. However, Dogecoin took
a pointy dive after the tech mogul’s appearance on Saturday Night Live.
The CBK outlined that the new warning
might be a part of the bank’s Diraya campaign, which translates to “Be Aware” in Arabic. Managed by the Kuwait Banking Association, Diraya aims
to boost financial awareness
within the country and encourage social responsibility activities across the Kuwaiti banking sector.
After listing
the standard beef regarding crypto,
like money laundering, fraud, and unauthorized transactions, the CBK noted the environmental cost of energy-intensive crypto mining operations.
Recently, Musk announced that
the electric car maker Tesla would stop accepting Bitcoin as a means of payment
due to its potentially harmful effect on the environment. However, consistent with
a new study by Mike Novogratz’s Galaxy Digital, traditional banking uses
twice more energy than Bitcoin annually.
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