Technology
It's a Scam: Dubai Launches DubaiCoin, a Cryptocurrency Set to Become the City's De-Facto Digital Currency
Update: The Dubai Media Office tweeted from its official Twitter handle last night, and debunked this. “Dubai Coin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors,” the tweet said.
Dubai Coin cryptocurrency was never approved by any official authority.
— Dubai Media Office (@DXBMediaOffice) May 27, 2021
The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors. pic.twitter.com/Q0HBXfqaDO
Dubai appears to be the first city to develop its own cryptocurrency. DubaiCoin (DBIX) is a cryptocurrency that is built on a public blockchain architecture. This implies that the currency's blockchain-ledger will be maintained by the public, and new coins will be minted through mining. For the time being, DBIX does not appear to be offered on any exchanges, however large exchanges are known to take up successful currencies. According to Crypto.com, the coin's price has increased by over 1000 percent in the just 24 hours. It began trading at $0.17 and was currently trading at $1.13 at the time of writing.
Surprisingly, the cryptocurrency has not yet been listed on any exchanges for trade. It was created by Arabchain Technology, which claims to be the first public blockchain based in the Arabic world, with the goal of making it comparable to conventional cash. “DubaiCoin will soon be able to be used to pay for a variety of products and services both in-store and online, with the obvious goal of replacing existing bank-backed currencies. “Both the city and approved brokers will oversee the circulation of the new digital currency,” the business claimed in a news statement.
The United Arab Emirates (UAE) and Dubai in particular are regarded for being safe havens for cryptocurrency trading and transactions. Many cryptocurrency firms are located in Dubai or establish corporations there in order to avoid financial difficulties. The India Covid Relief Fund, a crypto-based COVID-19 relief initiative in India, has established payment companies in Dubai. The firm uses this to get over regulatory barriers in India and converts cryptocurrency donations to fiat dollars in Dubai.
Dubaicoin may follow in the footsteps of other central bank digital currencies (CBDCs) throughout the world. That is, assuming it finally replaces the Dirham, is supported by the UAE's central banks, and is widely acknowledged throughout the country. To be clear, the Dubaicoin is not a CBDC at this time. China is still the only country in the world that has issued and is currently testing its own CBDC.
However, nation states like as the United States, India, the United Kingdom, and the European Union have been exploring their own CBDCs.
