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Bitcoins and other online monies not backed by Central Bank

Governor of the Central Bank of the Dominican Republic Hector Valdez Albizu warned the public that “virtual assets such as Bitcoin, Litecoin or Etherum or any similar values are not backed by the Central Bank and enjoy no protection under the judicial framework of the Dominican Republic.”

Valdez Albizu spoke during an inaugural speech at the forum on “Modern Threats to Cyber Security, Illicit Commerce and Fake Medicine,” organized by the British Chamber of Commerce of the Dominican Republic. The statement is also published online at the Central Bank website.

Valdez said the online currencies cannot be considered as foreign currency under the Dominican exchange regime, “since they are not issued nor are they controlled by any other central bank, and for that reason they do not receive the guarantees nor the security that is offered to financial intermediaries or the free exchange consigned in Articles 28 and 29 of the Monetary and Financial Law.”

On Thursday, 22 June 2017, the Monetary Board had issued instructions to the Central Bank to, among other things, publish in multiple media outlets a warning to financial agents and to the public in general about the risk associated with the use of virtual assets as a means of investment or payment in the Dominican Republic.

Furthermore, during the event, Valdez Albizu said that the Central Bank is collaborating with the Dominican Telecommunications Institute (Indotel) to prepare the national cyber security policy with action plans amidst internal and foreign threats before the end of the year. He said the plan needs to be the result of a public-private partnership so that it is inclusive and effective.

Source: DR1, DiarioLibre

June 30, 2017

Category: DR News |

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Last updated November 19, 2017 at 12:49 AM
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