Dubai appears to have developed its own cryptocurrency, known as the DubaiCoin (DBIX). It is established on a public blockchain, which means that anyone can mine DBIX to generate their own.
On May 27, around 4 p.m. IST, it was trading at roughly $1.13, up from the original price of $0.17. According to Crypto.com, the price of the cryptocurrency has increased by over 1000 percent in the last 24 hours.
The city of Dubai, on the other hand, issued a statement late last night denying this According to the official Dubai Media Office, “Dubai Coin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors.”
Arabianchain Technology, based in the United Arab Emirates (UAE), claimed to be the first public blockchain in the Arabic world when it introduced cryptocurrency. In a press release, the company stated, “DubaiCoin will soon be able to be used to pay for a range of goods and services both in-store and online, with the clear intention for the coin to be used in place of traditional bank-backed currencies. Circulation of the new digital currency will be controlled by both the city itself and authorized brokers.”
The United Arab Emirates is regarded as being a safe place for cryptocurrency investors but the Dubaicoin, on the other hand, would be distinct from other cryptocurrencies. While mining should make it fairly volatile, and as it is built on a public blockchain, it’s unclear what Arabchain means when it says the city of Dubai is regulating its pricing. If the coin replaces (or operates interchangeably with) the Dirham inside the UAE, it may qualify as a central bank digital currency (CBDC).
Being located in Dubai should provide the coin some stability since Dirham is always stable versus the dollar because of specific international treaties between the two countries.
Although the Dubaicoin is not exactly CBDC, it is the closest thing to China’s official digital Yuan, which is now being tested in the country. Countries such as the United States, India, the United Kingdom, and the European Union are considering digital versions of fiat currencies.