DubaiCoin surges by 1,000% in just 24 hours

On May 27, DubaiCoin — Dubai’s very own cryptocurrency trading on select exchanges — surged 1,000% in just 24 hours to trade from $0.17 to $1.13, according to Crypto.com.

The digital asset was launched by the country through the UAE-based company Arabianchain Technology, claiming it is the first virtual currency in the Arabic world and soon will be used by people to purchase products online and offline.

According to the online news outlet India Today, Arabianchain issued a statement saying, “Circulation of the new digital currency will be controlled by both the city itself and authorized brokers.”

Unlike other cryptocurrencies

The public blockchain pointed out that Dubai’s crypto will not work in a similar manner as the other digital currencies.

While it is true that mining the crypto will likely increase its volatility just like other cryptocurrencies, its price will be regulated by the city of Dubai and therefore will be more controlled as compared to others.

Moreover, it can also qualify as a Central Bank Digital Currency and can be something that is close to China’s official digital yuan that is being tested in the country. Along this line, India’s RBI is also looking to launch its own digital currency.

DubaiCoin as an example

Experts at Arabianchain also expect that authorities in India will closely monitor the performance of DubaiCoin as part of their efforts for a successful launch of their first digital currency.

It also remains to be seen how Dubai’s own crypto will handle the recent levels of volatility the crypto market has been showing for the past days as China intensifies its crackdown on bitcoin mining and Tesla’s Elon Musk serving as a one-man wrecking crew for the leading cryptocurrency.

For now, Dubai will both enjoy the benefits and bear the risks of having such asset class available for trading.

 

Image courtesy of Cointelegraph News/YouTube

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