Dubai launched its own first cryptocurrency known as DubaiCoin (DBIX). The DubaiCoin is trading on some selected public exchange. Dubaicoin cryptocurrency mining is based on a public blockchain. Public blockchain is a process where people will be able to generate their own DubaiCoin crypto by mining them.
According to Crypto.com, the price of DBIX has risen more than 1000% in just 24 hours of the launch. Its original price was $0.17 on launch and rose to $1.13 at around 4 pm IST on May 27, 2021.
Who launched Dubai Cryptocurrency (DubaiCoin) and what its use?
The coin was launched by Arabianchain Technology, a United Arab Emirates (UAE) -based company that claims to be the first public blockchain based in the Arab world. “DubaiCoin will soon be able to be used to pay for a wide variety of products and services both in-store and online, with the clear intent that the currency will be used in place of traditional bank-based currencies. The circulation of the new digital currency will be controlled by both the city and the authorized brokers, ”the company said. in a press release.
The UAE is known as a safe haven for crypto investors. In fact, India-based COVID-19 relief fund India Covid Relief Fund recently set up a facility in Dubai to convert the crypto donations received into fiat currencies. However, the Dubaicoin would differ slightly from normal cryptocurrencies.
While mining DubaiCoin should make it a little more volatile and based on a public blockchain system, it is unclear what Arabchain means when the city of Dubai regulates its price. The currency could qualify as central bank digital currency (CBDC) if it replaces (or works interchangeably) with the currency alongside the dirham in the UAE.
The seat in Dubai should give the currency some stability, as the dirham is always stable against the dollar thanks to certain international treaties between the two countries.