As part of its commitment to promoting financial literacy, Gulf Bank is advising its customers on the risks associated with virtual assets like cryptocurrency.
The initiative is part of the Let’s Be Aware “Diraya” campaign, now in its third consecutive year, which is spearheaded by the Central Bank of Kuwait and the Kuwait Banking Association.
AbdulMohsen Al-Nassar, Gulf Bank’s Corporate Communications Officer, said that virtual assets, particularly cryptocurrencies, are not legal tender in Kuwait. They are not subject to the Central Bank of Kuwait’s supervision and are highly volatile, often driven by speculation that could lead to sudden declines in value.
“Virtual assets do not include digital representations of banknotes, securities, etc., and are difficult to control due to their decentralized nature,” Al-Nassar stated.
Al-Nassar further highlighted that the Central Bank of Kuwait prohibits the use of virtual assets for payments or as an investment vehicle. No individual or corporate entity will be issued a license to engage in virtual asset activities within Kuwait.
“It’s crucial to refrain from using virtual currencies as a payment instrument, in line with the Central Bank’s directives,” he added.
The warning comes at a time when cryptocurrencies have gained global attention, both positive and negative, for their potential to disrupt traditional financial systems. Despite the allure, Gulf Bank continues to encourage its customer base to exercise caution when dabbling in this high-risk area.
Gulf Bank has been a significant player in supporting the Let’s Be Aware “Diraya” campaign. The campaign aims to improve financial literacy, raise awareness about the role of the banking sector, and highlight the services banks provide.
By focusing on educating the public about these modern financial instruments, Gulf Bank is enhancing its community engagement efforts.
This initiative aligns well with Gulf Bank’s broader vision of being the leading Kuwaiti Bank of the Future. The bank remains committed to employee engagement, fostering an inclusive and diverse workplace environment, and developing sustainable practices at various environmental, social, and governance levels.
Gulf Bank’s robust network and innovative digital services offer customers multiple banking options, promising a seamless experience.
The bank said its dedication to community service and sustainable growth is in line with Kuwait Vision 2035 “New Kuwait,” a long-term development plan aimed at transforming Kuwait into a financial and cultural hub. Through initiatives like these, the bank is not only fostering financial literacy but also making strides toward contributing to the national vision.