The United Arab Emirates (UAE) is looking to use cryptocurrency in a ‘main role’ in its trading policy, according to a report by Bloomberg.
Speaking to Bloomberg Television in Davos, Switzerland – where the World Economic Forum is currently being held – the UAE minister of state for foreign trade, Thani Al-Zeyoudi, made several positive statements about the potential role of cryptocurrency in the economy of the Gulf state.
“Crypto will play a major role for UAE commerce in the future,” Al-Zeyoudi said. For years, the UAE government has been trying to turn the country into a global crypto hub, mainly by implementing crypto-friendly policies with the aim of attracting the big guns in the $1 trillion industry.
Al-Zeyoudi discussed this project with Bloomberg stating the UAE plans to collaborate with the company to create the necessary legal framework for the expansion of cryptocurrency operations in the Middle Eastern country.
“The most important thing is that we guarantee global governance when it comes to cryptocurrencies and crypto companies,” he said.
“We started to attract some companies to the country with the aim that we can build the right government and legal system, which is needed,” he told Bloomberg in an interview on Friday.
UAE Provides Support For Crypto In Market Distress
Just a day before Al-Zeyoudi’s interview, the UAE minister for Artificial Intelligence, Digital Economy, and Remote Work Applications Omar Sultan Al Olama, who also represented the Emirates at the World Economic Forum, stated that the country remains committed to its goals. become the world’s cryptocurrency hub regardless of recent market crashes.
While participating as a speaker in a panel discussion titled “Finding the Right Balance for Crypto,” Sultan Al Olama made this claim when he said that crypto companies have referred to the UAE as a home as a positive thing to note.
Last November, the crypto market recorded huge losses after the sudden collapse of the FTX exchange. Although the market is still far from a full recovery, there have been steady gains in recent weeks.
For example, Bitcoin, the leader of the crypto market and the largest digital asset in the world, has recorded a 37.40% increase in its value since the beginning of 2023. According to data from CoinMarketCap, BTC is trading at $ 22,621.05 per unit with a market cap of $ 435.9 billion .
Trading BTC at $22712.00 | Source: BTCUSD chart on Tradingview.com
Can the UAE Become the Crypto Capital of the World?
On several occasions in the past few years, the Middle Eastern country has expressed its desire to become a global hub for cryptocurrency operations. To this end, the country’s government has continuously introduced several policies aimed at encouraging blockchain-based business activities in the country.
So far, these efforts have been very successful, with over 400 active crypto businesses currently operating in the UAE. Furthermore, due to the friendly regulatory framework, several exchanges, including Binance, OKX, BitOasis, etc., have all obtained licenses to operate in the country.
Dubai, the commercial center of the country, has also hosted famous cryptocurrency festivals, including the World Blockchain Summit, Crypto Expo Dubai, CryptoFest, etc.
Clearly, the United Arab Emirates is on the right trajectory to achieve its lofty goals. Although the nation still faces some challenges, including the constant risk of fraud and a lot of competition from other countries with similar goals, (eg, Bahrain, Qatar, Egypt, etc.), the UAE is now a leading contender to be the crypto capital of the world.
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