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UAE: A Hub for Blockchain Innovation
The United Arab Emirates (UAE) is positioning itself as a global leader in blockchain and cryptocurrency. Key trends include Shariah-compliant services, dirham-pegged stablecoins, and the influx of international talent, according to industry experts.
At recent events like Bitcoin MENA and Abu Dhabi Finance Week, professionals shared insights into the future of crypto in the Middle East. Experts from Blockdaemon, Core DAO, and MatterFi discussed how these trends are shaping the region.
UAE: A Launchpad for Crypto
Andrew Vranjes from Blockdaemon sees the UAE as a springboard for blockchain projects, thanks to its clear regulations. He believes the country will quickly rise in global rankings. The UAE is attracting talent from around the world, especially from London, India, and the Asia-Pacific region. Vranjes emphasized that with the right people, companies, and regulatory framework, success is inevitable.
Shariah-Compliant Crypto Services
Another significant trend in the Middle East is the growing demand for Shariah-compliant crypto services, particularly in DeFi (Decentralized Finance). Islamic finance prohibits interest-based lending and focuses on profit-sharing agreements, where both parties share risks and rewards. Adam Bendjemil from Core DAO highlighted that Shariah compliance is crucial for the region, not just for Bitcoin but also for decentralized finance. This demand is opening up new opportunities for Muslim investors and others looking for ethical investment options. In response, platforms like Bybit have introduced Shariah-compliant accounts for those seeking investments aligned with Islamic law.
Dirham-Pegged Stablecoins and Local Payment Innovation
Jakub Zurawinski from MatterFi pointed out the potential of dirham-pegged stablecoins in enhancing the UAE’s local payment systems. In October, a stablecoin issuer received approval from the UAE’s central bank for a dirham-pegged stablecoin. This move highlights the country’s focus on strengthening local payment methods, as opposed to relying on the US dollar or Bitcoin. While it may take time for Bitcoin to become legal tender, Zurawinski noted that the UAE is setting an example for blockchain innovation.
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