The first cryptocurrency, DubaiCoin has increased by more than 1000 percent ever since its debut in one day.
The City of Dubai has introduced its own DubaiCoin cryptocurrency (DBIX). The currency trading is based on a public blockchain and a certain number of exchanges, meaning that anybody can generate their own DBIXs by mining them. According to Crypto.com, the price of the cryptocurrency has increased by more than 1000 percent over the last 24 hours. On May 27, it traded at about 1,13 dollars at about 4 p.m. IST up to an original price of 0,17 dollars.
Arabianchain Technology, a company based in the United Arab Emirates (UAE), introduced the cryptocurrency, claiming to be the first public blockchain based in the Arabic world. “DubaiCoin will soon be able to be used to pay for a variety of goods and services both in-store and online, with the clear purpose of replacing traditional bank-backed currencies. The new digital currency's circulation will be controlled by both the city and authorised brokers, according to a press release from the company.
For cryptoinvestors the UAE has proven itself to be a secure haven. Indeed, the COVID-19 aid fund located in India, India Covid Relief Fund, has lately established a business in Dubai to convert its crypto-donations to fiat moneies. The Dubaicoin, however, would differ slightly from ordinary cryptocurrencies.
Although mining should make it somewhat volatile and based on a blockchain public system, Arabchain does not understand what it means to regulate its price by the city of Dubai. The coin could qualify as a CBDC if it replaces (or exchanges) the Dirham in the UAE. The coin can also be a central bank digital currency. Based in Dubay, the coin should be stable since, according to the international treaties between the two countries, Dirham is always steady in comparison to the dollar.
The CBDC may not be the identical CBDC, but it is possibly nearest to the official Chinese digital Yuan, which is being tested right now throughout the country. In countries such as the US, India, the UK and the European Union, digital equivalents of fiat currencies are also being examined.