Dubai Police Chief: Despite Challenges, Virtual Currencies Will Replace Fiat

Despite the glaring challenges cryptocurrencies are faced with, a senior law enforcement official in Dubai still believes that virtual currencies will replace traditional fiat cash in the near future.

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Despite the glaring challenges cryptocurrencies are faced with, a senior law enforcement official in Dubai still believes that virtual currencies will replace traditional fiat cash in the near future.

Cryptocurrencies to replace cash

Local media outlet Khaleej Times reported on September 16 that, Lt-Gen Dhahi Khalfan Tamim, senior Dubai law enforcement official predicted virtual currencies will soon replace fiat when speaking during a panel spearheaded by him.

The journey to replace cash

According to Lt-Gen Dhahi Khalfan Tamim, who currently serves as the deputy chairman of the Dubai Police and head of general security in Dubai, before cryptocurrencies replace cash, they would need to overcome some hurdles.

These hurdles include relative lack of public awareness and insufficient crime prevention tactics in place.

The crypto industry has enjoyed tremendous growth over the last couple years, and Tamim further noted that once virtual currencies scale these hurdles, then they can enjoy mainstream adoption.

Tamim argues that users will continue to question the authenticity of virtual currencies as long as their sources and tracking system remain questionable.

Dubai police raise concerns over cryptocurrency risks

Despite the overall positive stance of Dubai towards cryptocurrencies, in a recent forum, members of the Dubai police voiced their opinions of the increasing popularity of blockchain-based tender.

Dubai police are currently conducting investigations of cryptocurrency related crimes reaching up to 300 million Dirham.

The report noted that the lieutenant commander of the Department of Criminal Investigations of the Dubai Police, Khalil Ibrahim Al Mansouri alleged that ignorance of the risks and vulnerabilities of cryptocurrencies leaves cryptocurrency investors vulnerable to scams.

The Emirates have working to control the crypto industry. Last week, reports emerged that lawmakers of the United Arab Emirates are in the process of adopting legal regulations for both fintechs and ICOs.

Dubai and virtual currencies

Unlike most countries which are shying away from virtual currencies, Dubai has taken a progressive stance on both cryptocurrency and blockchain regulation in recent years.

Dubai’s well-developed strategies and interest in the blockchain technology have placed the United Arab Emirates ahead of neighboring countries in the sector.

In August this year, the Dubai International Financial Centre announced a collaboration with Smart Dubai in order to create the world’s first Court of the Blockchain.

Speaking on Dubai’s vision for blockchain, Dr. Aisha Bint Butti Bin Bishr, Director General of the Smart Dubai Office stated that:

“The emirate has become a global trailblazer in embracing advanced technologies and steering them towards the safety, comfort, and happiness of our city’s residents and visitors. One of the most notable of these innovations is Blockchain, where the Dubai Blockchain Strategy seeks to run 100% of applicable government transactions on Blockchain by 2020.”

In future, the collaboration will see both agencies join forces to investigate disputes that arise out of both private and public blockchains.

The partnership will also be involved in developing both regulation and contractual terms that can be encoded in smart contracts in the Emirates.

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