The Dominican Republic’s top financial regulator recently issued a warning to citizens about the risks associated with investing in cryptocurrencies. Alejandro Fernández, the Dominican Superintendent of Banks, emphasized the nation's official stance of prudence towards crypto, stating that digital assets do not have the necessary qualifications to become legal tender in the country.
crypto-doesn-t-have-what-it-takes-to-become-legal-tender">Dominican Republic: crypto Doesn’t Have What It Takes to Become Legal Tender
Fernández highlighted the risks and challenges linked to utilizing a technology that is still in its evolutionary phase without a specific regulatory framework in place. He underlined the Monetary Board's cautious approach, emphasizing the need to alert the population regarding the potential risks associated with cryptoassets.
“The official position regarding cryptoassets is basically one of prudence – an alert to the population about the risks that cryptoassets can pose.”
Alejandro Fernández, Superintendent of Banks, Dominican Republic.
crypto-is-volatile-regulator-warns">crypto Is Volatile, Regulator Warns
Fernández also pointed out the extreme volatility exhibited by cryptocurrencies, highlighting their speculative and unregulated nature, which poses dangers to investors. While acknowledging the innovative potential of blockchain technology, he urged financial authorities to prioritize user protection and educate the public about the associated risks.
The Superintendent of Banks stressed the importance of enhancing online security practices and cautioned against sharing sensitive information or passwords on public networks. He advised citizens to exercise caution when encountering suspicious messages or links, particularly those sent via platforms like WhatsApp that could lead to account hacking.
Furthermore, the Latin American Financial Action Task Force has previously advised the Dominican Republic to strengthen its regulatory framework for cryptocurrencies. Despite regulatory warnings, the popularity and adoption of cryptocurrencies remain high in the nation, with leading exchanges like binance expanding their operations in the region.
