From the news article:
"...[Bitcoin] can be easily used in money laundering and in funding terror activities," the Governor said...
I think the UAE Central Bank Governor made two valid reasons against the use of bitcoin:
(1) as abetting money laundering
(2) easier funding of terror activities
Although a case can also be made against any fiat currency for these reasons, the fact that the use of bitcoin is more difficult to trace (i.e., it was designed to make transactions anonymous) makes this announcement by the UAE government understandable, as they (presumably) wouldn't want to have any part in these illegal activities.
Bitcoin is a double-edged sword, we get it; we love that we can make transactions without anyone's prying eyes checking our activities (not to mention that these transactions are all tax-free), but we also hate it when the taxes we pay could be siphoned off by some enterprising politician to his private bitcoin account(s), with no legal way to link the account(s) back to him.
What to do in these situations?