Today, digital currency investment is a popular topic among youth, with digital currency work considered a stimulating field for members of the community.
Digital currencies are digital assets used as a means of exchange online, however, these currencies are not physical like coins or banknotes, but rather electronically encrypted and rely on decentralized technology known as blockchain.
Examples of popular digital currencies include Bitcoin, a digital value that can be used for online exchanges such as trading, buying, and selling, as well as others like Ethereum, Ripple, Litecoin, and many more.
Blockchain technology is the fundamental technology that enables virtual digital currencies to function, this technology is an encrypted record that eliminates the need for a central intermediary between parties, allowing individuals and institutions to deal directly with each other without an intermediary.
According to experts, this encrypted record and decentralized distribution make blockchain more secure compared to traditional record systems.
Blockchain and digital currencies represent a qualitative leap in how value and data are organized and exchanged online, making them two intriguing fields for innovation and investment.
There are several different opinions among youth regarding the idea of investing in digital currencies:
- The supporting team
- They see digital currency as the alternative for future investment and a way to reduce the use of paper currency.
- They note that the United Arab Emirates issued Cabinet Decision No. 111 of 2022 regarding the regulation of virtual assets and their service providers, supporting their theory.
- The opposing team
- They believe that digital currency is an investment in the unknown and that the essence of investment lies in paper currency and traditional activities.
- They see one of the challenges of digital currency is that its fraudulent crimes may span continents, making it difficult to identify the perpetrators.
The UAE’s efforts in the field of virtual assets
The UAE Cabinet issued Decision No. 111 of 2022 regarding virtual assets and their service providers to develop the legislative system for the virtual asset sector in the country and ensure the compliance of the virtual asset sector in the country with all the provisions of Federal Law No. 20 of 2018 regarding combating money laundering, terrorist financing, and financing of illegal organizations.
Furthermore, this decision aims to support the state’s efforts to provide an attractive investment, economic, and financial environment for global companies and institutions operating in the virtual asset sector to provide their services in the country, in addition to protecting investors in virtual assets from unlawful practices.
