Blockchain technology is gaining traction as governments and organizations worldwide, especially in the Middle East, declare their use of the technology. Some Arab countries, primarily in the Gulf region, have begun to use blockchain technology for government and commercial services and supply chain management. In 2018, the United Arab Emirates announced a plan to shift 50% of government transactions on the blockchain by 2021.Saudi Arabia and the United Arab Emirates lay out a red carpet for digital currency regulation with a light touch.
Cryptocurrency, Blockchain, and the Middle East:
Blockchain is essentially a publicly distributed ledger or record book. On the other hand, a cryptocurrency is a digital asset that operates as a means of exchange, similar to traditional currencies such as dollars, but which relies on blockchain technology and encryption to authenticate transactions and is not backed by a single entity.
Because the records on a blockchain ledger are shared throughout a network, each network member has a full copy of the ledger that they can view but not edit; blockchain is also known as a distributed ledger technology. Because each network member owns a copy of the ledger, there is no need for a single trusted body to validate its contents.A public ledger also increases the data’s security and validity.
According to its proponents, the benefits of blockchain include efficiency, openness, and security. Detractors argue that blockchain is another business jargon with speculative, hypothetical, and unmet benefits. According to Bittrex Global’s chief executive officer, Dubai is well-positioned to benefit from the booming cryptocurrency sector in the Middle East, as its regulators spearhead a drive toward approval of blockchain-based technology.
Companies and governments in the Middle East have also begun to study blockchain and cryptocurrency technology. Following the success of Aber, Gulf states have started to consider alternative applications for digital currencies. The Dubai government announced intentions to establish the world’s first “blockchain court” last year. However, because these technologies are still new, many governments and businesses in the region are still investigating them rather than implementing them. According to Al Arabiya English, blockchain could aid Saudi Arabia’s Vision 2030 economic transformation agenda by removing layers of bureaucracy and improving the availability of digital services.Dubai, the region’s financial capital, has taken significant efforts in recent months to promote the use of blockchain in the city, and Stonberg expects Middle Eastern sovereign wealth funds to follow suit.
Cryptocurrency mining is a high-energy activity in which miners compete to be the first to complete a complex algorithm that verifies a set of transactions in exchange for a bit of cryptocurrency payout.As a result, the cost of power has the most significant influence on whether or not mining is profitable.
DUBAI—An Emerging Crypto Capital in the Middle East:
As online payments gain traction, consumers and investors flock to digital assets, and interest in cryptocurrencies and blockchain is exploding, particularly in the UAE. According to a poll conducted by London-based Nickel Digital Asset Management, between now and 2023, a growing number of organizational investors and wealth managers in the UAE want to increase their exposure to digital assets. Even though a few cryptocurrency exchanges have been granted authorization to operate within the economic free zones, the UAE Central Bank does not license cryptocurrencies. With the approval and permit of the Central Bank, the UAE Dirham is the country’s only legal tender.
According to the president of a UAE-based cryptocurrency platform, countries in the Middle East are beginning to grasp the necessity of embracing Bitcoin and other cryptocurrencies as these digital assets gain popularity every day.
Dubai expects more than 1,000 bitcoin businesses to be operational by 2022 as part of its efforts to build its digital economy.
The free/independent zones of Dubai and Abu Dhabi have put in place a sophisticated structure to promote crypto entrepreneurs to operate exchanges while also establishing outlaws to protect consumers. At a Gitex session, Dr. Marwan Al Zahrouni, CEO of the Dubai Blockchain Centre, remarked, “You wouldn’t see folks coming to Dubai to operate the cryptocurrency business five years ago… we’re open-minded, and we’re willing to alter regulations with reason.”
Crypto Zones In Dubai:
The city of Dubai will soon have crypto zones. According to Bitcoin.com, the Dubai World Trade Centre would become a “complete ecosystem for cryptocurrencies and providers of associated services.” A crypto firm can play an imperative role. The UAE is interested in assisting new crypto-related firms, such as Binance.
The UAE government is planning to create a specific zone at the Dubai World Trade Center where all enterprises dealing with digital assets will sell their goods and services. According to Dubai’s official release, as metaverse trends gain traction, the city aims to expand its virtual assets space. In a digital setting powered by blockchain technology, non-fungible tokens (NFTs) allow people to hold land and other things.
Boosting the Digital Assets in UAE:
The UAE has taken several steps to encourage the trade of digital assets in the wake of increased interest. Last month, the Securities and Commodities Authority and the Dubai World Trade Centre Authority agreed to support cryptocurrency trading.The first Crypto Expo Dubai was also held in Dubai. It comes as the region’s interest in crypto assets grows.
BitOasis, a cryptocurrency asset exchange based in the United Arab Emirates, announced earlier this month that it had raised $30 million in a Series B fundraising round, which it plans to use to grow throughout the Middle East and North Africa.
There has been encouraging progress in the Middle East, according to BitOasis Chief Executive Officer Ola Doudin, where certain governments are “really attempting to be ahead of the curve and embrace this technology, as well as involving frameworks that allow entrepreneurs and enterprises to grow.”
BitOasis announced excellent financial results for the first half of 2021, including trade volumes over $3 billion and a 200 percent rise in user base.
The Future of Cryptocurrency In Dubai:
Dubai aspires to be the world’s first blockchain-based economy.Dubai’s First Official Cryptocurrency Is EmCash!
The Dubai government has established its blockchain-based coin. To create emCash, the city’s economy department teamed up with Emcredit Limited, one of its subsidiaries, and Object Tech Group, Ltd., situated in the United Kingdom. This new “encrypted digital money” is the result of Dubai’s Accelerators Initiative, which has been brought under the aegis of the Dubai Economy Accelerators. In a press statement, Dubai Economy deputy director general Ali Ibrahim remarked. “It will change the way people live and do business in Dubai, and it will be a watershed moment for the city in terms of utilizing game-changing technology to improve business and quality of life.”
Officials claim that emCash is based on the newest blockchain technology and is part of the emWallet payment system. Emcredit, the city’s credit agency, has ensured that the emWallet can manage a wide range of transactions—from “their daily coffee and children’s school fees to utility expenses and money transfers”—using near-field communication (NFC) technology.
The city will also establish a Blockchain as a Service platform to assist Dubai government agencies in using blockchain in various initiatives.