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Underscoring its keenness to actively participate in promoting financial culture and raising awareness among various segments of society, and in line with its social responsibility, National Bank of Kuwait (NBK) continues to support the activities of “Let’s Be Aware” banking awareness campaign by intensifying awareness campaigns about the risks of dealing or investing in virtual assets or the so-called cryptocurrency.
Over the past period, the bank intensified its advertising materials and publications on all its social media pages, including discussions with experts and specialists, with the aim of increasing public awareness about the various risks they are prone to when investing in these high-risk assets.
This campaign comes in support of the Central Bank of Kuwait’s efforts in taking the necessary measures to raise customers’ awareness of the risks associated with dealing in virtual assets.
The campaign, in which NBK participates, highlights that dealing or investing in cryptocurrencies comes at a high risk, in view of the nature of these assets and the high fluctuation in their prices, in addition to that these currencies are not subject to the regulation or supervision of any authority in Kuwait, thus exposing speculators to heavy losses and frauds.
It is worth mentioning that virtual assets, known as “digital or crypto currencies”, are not comparable to real currencies which are issued by a lawful state as a currency and as a symbol of sovereignty, and is regulated by state authorities such as central banks or monetary institutions, is considered and accepted as a store of value and legal tender, and serves as a reliable medium for exchange. Furthermore, states strive to protect their real currency and employ policies that guarantee relative stability of the exchange rate against major world currencies.
Central banks around the world warn against the risk of dealing in cryptocurrencies being prone to sharp fluctuations in their value over a short period of time, in addition to the difficulty to supervise them and follow up on relevant developments and provide any type of security for the systems/devices used by traders and speculators, in addition to lack of any institution or body that can control or regulate this market. Moreover, such assets pose a threat to the global financial system and to people’s fortunes, especially since the transactions can be carried out through illegal/bogus wallets or organizations, which could lead and direct individuals’ funds beyond the guarantees of official trading protocols/guidelines. These currencies are also offered by unidentified issuers, and traded under fictitious names, leaving wide room for illegal uses of funds, unauthorized transactions, and money laundering, since the assets are not under the control of any central authority, in addition to the threat of digital breaches and attacks.
Investment alternatives
Instead of undergoing such high risks, NBK provides customers with full-fledged financial solutions and innovative investment opportunities, including deposit accounts and mutual funds, which are safe ways to invest. Moreover, NBK Capital, the investment arm of the bank, offers SmartWealth, a digital investment that offers investors a best-of-breed solution in Kuwait for long-term investment savings.
SmartWealth’s state of the art technology customizes customers’ model portfolio based on their risk appetite, financial goals and aspirations. The simple and user-friendly registration process for this service enables them to have their own diversified portfolio of global equities, fixed income, commodities and real estate baskets (ETF based).
“Let’s Be Aware”
It is worth mentioning that “Let’s Be Aware” banking awareness campaign launched by the Central Bank of Kuwait, in cooperation with Kuwait Banking Association (KBA), as part of the efforts to spread financial, credit and banking culture among banks’ customers and the society, at large.
The campaign covers many topics such as the process of borrowing, banking cards, familiarization with the rights of special needs customers, as well as advice related to cybersecurity and the protection of bank accounts. It also provides guidance regarding complaint submission mechanisms, and protection of customers’ rights, and introduction of the functions of the banking sector and its role in promoting and developing the economy, so that all segments of society become more familiar with banking and financial transactions.
© Press Release 2021
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