Why MENA is becoming more and more interested in Crypto

Why MENA is becoming more and more interested in Crypto

Globally the cryptocurrency-related ecosystem and technology known as Fintech is rapidly modifying.
According to the forecast for 2024, the total revenue associated with the fintech sector will increase to
214 billion U.S dollars. In the MENA region, fintech industries play a prominent role; however, initially,
the countries were reluctant towards it.

With the pacing time, there is a rapid emergence in bitcoin trading platforms which makes one
introspect as to why is MENA getting more involved in cryptocurrency when previously the region didn’t
want anything to do with the digital assets. At the forefront of this development resides the United Arab
Emirates. Read on to quench your thirst for knowledge!

Crypto growth in MENA

Since the initial introduction of Fintech, money transfer and digital payment has been the leading
fintech service adopted by customers worldwide. This was followed by more investment tools and
savings, including insurance services as well. As per the time of writing, 3.8 billion people worldwide
have adopted digital payment services.

This number is expected to rise to almost five billion by the year 2025. In the Middle East and North
Africa region, digital payment is the most direct service used by banking customers. In the past years,
with the increase in smartphone usage, fintech usage escalated to younger banking customers in MENA.
Thereby aiding the growth of cryptocurrency within it.

Steps to innovation

Another reason why the MENA region is getting more involved in digital assets is that the countries and
their governments recognize the imperativeness associated with blockchain. With the world moving at a
fast pace, countries in the MENA region need to keep up with the developing technological innovations.
A vital role has been played by governments who have embraced blockchain and digital assets, thereby
driving the economy in the direction of digital transformation.

Government Stances

The increasing use and acceptance of Fintech in the MENA region is one of the sole reasons why there is
more interest in the crypto-ecosystem now. As discussed previously, the government of the MENA
region has been the pivotal player in the increasing interest.

The United Arab Emirates, for example, launched Emirates Blockchain Strategy 2021 to assist the
transfer of government transactions to blockchain in 2021. On the other hand, Dubai’s Multi
Commodities Center (DMCC) formed a Crypto centre earlier in 2021 to support businesses in the

blockchain and cryptographic sector. In a similar stance, the Saudi Arabian Monetary Authority deployed
blockchain technology for money transfers.

Sustainability & Crypto

Another reason why Crypto is becoming a point of interest in the MENA is the sustainability aspect of
digital assets. A lot of countries in the MENA region are leveraging crypto-based technology to assist in
their sustainability agenda. Blockchain and Crypto bring in a unique opportunity for green initiatives.
Companies in the MENA are benefiting from this intersection of technology and sustainability to fuel
innovative projects.

Countries like Saudi Arabia are focusing on renewable energy sources production by the year 2030. Oil
giant companies like Aramco have managed to transition to the blockchain, thereby adding to its
efficiency and sustainability. In Dubai, various projects like Dubai’s sustainable city, Dubai South and
Desert Rose City also aim to utilise blockchain power to aid in processes. These are critical motivators
for other countries in the MENA region to follow suit.

Future Prediction

The majority of projects that have been announced by the Gulf states based on blockchain are either in
the preliminary stage or establishment phase. The projects have a novelty associated with them that
adds to the potential and the need for adequate pilot tests. Despite the developmental phases, there is
no doubt that Blockchain technology will expand in the MENA region, specifically in the UAE, Saudi
Arabia and Bahrain. With more development in the infrastructure of the Gulf, e-government and IT
projects are the future.

In a nutshell

Crytpcorreucy and leading trading platforms are increasing in number across the MENA region. The UAE
is specifically highly involved in bringing forth the FinTech association in the region. With more
development on board, there is a high probability that the interest of other countries worldwide will
escalate as well. It seems like a logical plan if you are planning to invest in the crypto-system right now.
In time the volatility of the crypto ecosystem is bound to end. Happy Crypto-ing!

Related Posts