Santo Domingo, Dominican Republic, Thursday, August 29, 2024 – Alejandro Fernández, the Superintendent of Banks in the Dominican Republic, has issued a strong warning to citizens about the dangers of investing in cryptocurrencies.
Speaking to the DR’s Acento news website on August 20 Fernández emphasized that the official stance toward cryptoassets is one of caution, citing significant risks and challenges due to the evolving nature of the technology and the lack of a specific regulatory framework in the country.
Fernández highlighted that despite the global rise in cryptocurrency popularity, these digital assets do not meet the criteria to be considered legal tender in the Dominican Republic.
He pointed out the extreme volatility of cryptocurrencies, describing them as speculative and unregulated, which poses significant dangers to investors.
Fernández also expressed concerns about the potential use of cryptocurrencies in illicit and illegal activities, including cyber-blackmail.
In his remarks, Fernández also introduced the concept of “digital hygiene,” and “financial hygiene” stressing the importance of online security practices.
While acknowledging the innovative potential of blockchain technology, Fernández called for financial authorities to prioritize user protection and education about the associated risks of cryptocurrencies.
He emphasized that these measures should become a priority for Dominican regulators as crypto adoption rates continue to grow in the country and across the Latin American region.
The Dominican Republic has previously faced warnings from the Latin American Financial Action Task Force to improve its crypto regulation.
