As a seasoned crypto investor with over two decades of experience in global financial markets, I’ve witnessed the rise and fall of various trends, but the recent developments in the United Arab Emirates (UAE) have piqued my interest more than ever. Having lived and worked in several Middle Eastern countries, I can confidently say that the UAE is rapidly becoming a hotbed for blockchain and cryptocurrency innovation.
Industry experts are indicating that the United Arab Emirates (UAE) is actively working towards becoming a leading global center for blockchain and cryptocurrency advancements. Notable developments include the growth of Shariah-compliant solutions, the creation of dirham-backed stablecoins, and an increase in international recruitment of skilled professionals in this field.
During the Bitcoin MENA and Abu Dhabi Finance Week gatherings in the United Arab Emirates, experts in cryptocurrency shared their insights on the major developments that will influence the regional crypto sector’s trajectory in the Middle East.
I had a conversation with Andrew Vranjes, Blockdaemon’s chief revenue officer, Adam Bendjemil, head of ecosystem growth at Core DAO, and Jakub Zurawinski, head of business development at MatterFi, to gather their perspectives on notable trends they’ve observed in the UAE and Middle East region.
A “springboard” for crypto adoption
As a crypto investor, I’ve come to view the UAE as an ideal starting point for blockchain projects due to its regulatory transparency which sets it apart from many other jurisdictions. I firmly believe that this market is poised to accelerate at an incredible pace. In fact, I anticipate it will swiftly climb up global rankings in terms of blockchain adoption and innovation.
According to Vranjes, the country successfully lured skilled individuals who were previously based in London, India, and the Asia-Pacific area.
Vranjes noted that success comes when you have the ideal team, the appropriate businesses, and a favorable set of rules or guidelines.
Shariah-compliant crypto services
“The increase in need for crypto services that adhere to Shariah principles is a notable trend, particularly within the realm of decentralized finance (DeFi). Islamic finance rejects loans with interest, instead favoring profit-and-loss sharing arrangements. In these agreements, lenders and borrowers share the risks and rewards of investment, both parties experiencing losses and gains together.
According to Bendjemil, Shariah compliance currently holds significant significance in the discourse surrounding the Middle East, and this isn’t limited to Bitcoin (BTC). This concept is equally crucial for Decentralized Finance (DeFi) as well. The executive from Core DAO emphasizes that this focus on Shariah compliance presents opportunities for individuals within the Muslim community.
“Shariah compliance will unlock many possibilities for a lot of people in the Islamic world, and probably beyond that because projects are about to be ethically aligned.”
According to Bendjemil, there’s a frequent request in the Middle East for this, and various construction professionals have begun developing robust plans to adhere to Islamic legal principles (Shariah laws).
As an analyst, I’m excited to share that come September, I played a part in introducing a cryptocurrency account that adheres to Shariah principles. This innovative financial solution is designed for those who wish to invest in line with Islamic law.
Dirham stablecoins and making Bitcoin legal tender
Zurawinski highlighted the possible effects of stablecoins pegged to the dirham, suggesting they might fortify the United Arab Emirates’ domestic payment system.
On October 18th, a company that creates stablecoins obtained preliminary approval from the central bank of the country for a possible stablecoin linked to the UAE Dirham. Zurawinski stated, “This demonstrates the emphasis on the local payment method, which is primarily the Dirham, rather than the US Dollar or Bitcoin, as a legitimate tender.
According to Zurawinski, it could take a while before Bitcoin becomes an officially accepted method of payment in the country. Nevertheless, he emphasized that the UAE is demonstrating the way innovation ought to be done in this context.
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2024-12-17 15:31