Qatar Central Bank Warns of Bitcoin Trading Risks

Doha, February 08 (QNA) - Qatar Central Bank (QCB) has issued a number of circulars to the financial institutions operating in the country warning of the risk of trading in digital currency Bitcoin and demanding all financial institutions not to open any accounts for trading in that currency, and not to carry out or receive any fund transfers for its circulation. The circulars highlighted the increasing activity of trading in Bitcoin all over the world and the resulting negative consequences in global financial markets, QCB said in a press release. The bank reaffirmed its keenness on the safety of the state's financial and banking system and protecting it from the risks surrounding trading in Bitcoin such as the absence of obligation from any central bank or government around the world to guarantee the value of this currency and the lack of any equivalent for it whether in gold or other metals or commodities. Moreover, Bitcoin's value fluctuates greatly and can be used in financial crimes and electronic piracy, in addition to the possibility of losing its value because there is no guarantor. QCB urged investors to take the necessary precaution when dealing with digital currencies. (QNA)