It has been reported that the bank stated that crypto assets are not real currencies even though they are commonly called cryptocurrencies.
The statement stated:
“The real currency is regulated by state authorities such as central banks or monetary institutions. It is considered and accepted as a store of value and legal tender. It serves as a reliable medium for exchange.”
However, the statement noted Dogecoin (DOGE) among the most prominent cryptocurrencies by market capitalization, Bitcoin (BTC) and Ether (ETH). Dogecoin is known for its meteoric rise earlier this year after Elon Musk’s repeated mentions of the meme-originated coin on social media. Dogecoin took a sharp dive after the tech mogul’s appearance on Saturday Night Live.
As the bear vs bull fight continues, banks have to take a position. This time the Central Bank of Kuwait is warning its customers about crypto investments. https://t.co/6kCZA9cZWC — Cointelegraph (@Cointelegraph) May 24, 2021
The report said that the CBK noted that the warning is a part of the bank’s Diraya campaign, which translates to “Be Aware” in Arabic. Managed by the Kuwait Banking Association, Diraya aims to raise financial awareness in the country and encourage social responsibility activities across the Kuwaiti banking sector.
The bank also CBK the environmental cost of energy-intensive crypto mining operations after listing the typical beef regarding cryptos, such as money laundering, fraud, and unauthorized transactions.
Thus, according to a new study by Mike Novogratz’s Galaxy Digital, traditional banking uses two times more energy than Bitcoin annually.