Oman’s Central Bank cautions about cryptocurrencies, specifically Dagcoin

The Central Bank of Oman (CBO) has warned its residents and citizens against trading in cryptocurrencies such as Dagcoin.

By · Oct 7, 2020 . 6min read

Oman's Central Bank Dagcoin latest news
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The Central Bank of Oman has warned citizens about cryptocurrencies. It states that cryptocurrencies come with high risk. It also emphasizes the risks of Dagcoin. Reported by the Times of Oman on Tuesday, the Central Bank of Oman (CBO) cautions all citizens and residents about using all cryptocurrencies.

Cryptocurrencies are risky owing to fluctuations in price: CBO.

The Central Bank of Oman singled out Dagcoin. It is a cryptocurrency that has reportedly observed uptake in promoters from the Ponzi scheme OneCoin. The advice is comparable to one published by the central bank of Jordan in 2019, which also emphasized Dagcoin as unusually risky as an investment.

The CBO reports that cryptocurrency and digital assets are full of risk owing to the transformation of their value prominently and the chances of being employed for electronic piracy and fraud.

Central Bank of Oman says crypto traders to encounter various issues.

Further, the Central Bank of Oman clarifies its regulations. It states that it has not granted any license or authorization to any entity for trading in cryptocurrencies. Therefore, the Central Bank of Oman does not guarantee accepting, holding, trading cryptocurrencies and related products. Moreover, Banking Law 114/2000 does not guard it as a Central Bank money.

Moreover, the Central Bank of Oman says that the citizens and residents who are users, holders, and traders of crypto may be liable to potential, operational, financial, legal, and security-based issues. They may not receive consumer protection if exposed to risks. The bank further states that anyone trading in crypto will be doing so at their own risk.

Whereas the Central Bank of Oman is stringent with its crypto policies, various banks have started trialling and planning the launch of Central bank digital currencies (CBDC). Recently, the Central bank of Estonia, Eesti Pank, has launched a multi-year central bank digital currency (CBDC) initiative. It is in association with the technology companies Guardtime and The SW7 Group. It intends to research the Estonian e-government core technology’s suitability to operate a central bank digital currency.

Earlier, U.S. blockchain firm ConsenSys declared that it received a central bank digital currency (CBDC) project with the Hong Kong Monetary Authority (HKMA). The initiative includes a cross-border payment network with Thailand as the second implementation phase of Project Inthanon-LionRock. 

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