The DubaiCoin cryptocurrency, which was launched by the city of Dubai and is based on a public blockchain that means people can generate their own coins through mining. The price rose more than 1000% in 24 hours; it had been trading at around $1.13 as of 4 pm on 27th May.
But late last night, the City released an official statement debunking this information:
“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,”
DubaiCoin is a new cryptocurrency introduced by Arabianchain Technology. They say it will soon be able to be used for transactions in the UAE, and has clear intentions of replacing traditional currencies such as dollar bills or euros with DubaiCoins. The digital currency's circulation will also have involvement from both government officials and authorized brokers who are supervising its use.
Crypto investors are always looking for safe havens, and the UAE provides just that.
The new cryptocurrency is based off mining which should make its price volatile - although not as much so as other coin's prices since Arabchain states they will regulate this currency’s value by controlling inflationary pressures through various mechanisms like managing interest rates or imposing fiscal policies.
The Dubaicoin may not be an exact Central Bank Digital Currency (CBDC), but it is perhaps the closest we have to China’s official digital Yuan, which has been tested in the country right now. Digitized versions of fiat currencies are also being considered in countries like India and UK.
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