MUSCAT: “[Cryptocurrency] is an asset that we at the Central Bank and many central banks around the world do not recognise as a currency,” shared the Chief Executive Officer of the Central Bank of Oman, Tahir bin Salim al Amri.
In a discussion panel yesterday at the Youth Center in Muscat, Al Amri explained the Central Bank’s stance on the currency.
“It’s not a means of payment, it is a commodity or an asset of some sort that is being traded mainly ...for capital gain.”
In addition, he cited the risks associated with it the main reason behind the Bank’s stance.
“We also find the governance around to be very risky and so we always caution people dealing with it, the Central Bank takes no responsibility for it.”
According to Al Amri, the Central Bank is keeping an open mind while maintaining caution.
“All the central banks and the regulators around the world are looking at it with an open mind, but we are also institutions that need to control risk and for the time being we see it as a very risk product.”
The Capital Market Authority (CMA) recently announced its plans of establishing a framework to regulate virtual assets in Oman.
The Central Bank, according to Al Amri, participated in the creation of this framework.
According to the (CMA), the regulatory framework will include “crypto assets, tokens, crypto exchanges, and initial coin offerings”.
Furthermore, the Central Bank is still in the process of developing its digital currency which was announced last year.
“We have already engaged in a specialised forum to help us look at the pros, cons and the applicability of it,” shared Al Amri.
A decision is expected to be made by the end of the year.
Al Amri also shared that various fintech services such as Apple Pay and buy-now-and-pay-later services are expected to be available soon in Oman.
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