Although last year saw persistent bearish conditions, the executive chairman of Iceberg Capital Limited, Mustafa Kheriba, believes that the adoption and interest in blockchain and cryptocurrency have remained strong.
Kheriba supports this claim by citing the 23rd State of the Developer report, which indicates that experienced software creators are probably working on blockchain initiatives.
Despite this, the executive chairman of Iceberg Capital Limited informed Bitcoin.com News that interest had notably increased, especially in North Africa and the Middle East region. This surge in interest is partly due to certain regional regulators taking the lead by proposing and implementing frameworks to regulate crypto assets.
Furthermore, Kheriba mentioned that the rise in the number of citizens who have adopted cryptocurrency could be attributed to factors like the devaluation of national currencies and inflation. However, residents of affluent nations perceive cryptocurrency as an investment chance that is becoming more popular.
In the remaining written reactions he provided to Bitcoin.com News through WhatsApp, Kheriba expressed his opinions regarding the community’s future for global Inter-institution Financial Telephone communication.
The MENA region has been experiencing growing momentum for various reasons, including country-specific factors. For example, inflation in nations such as Turkey and Egypt drives individuals towards cryptocurrency to preserve value and hedge against the devaluation of fiat currency.
This situation is especially significant in nations where the government’s monetary policies could be more stable and provide reliability. Conversely, Gulf nations are witnessing a swift evolution of banks, financial institutions, and regulatory frameworks, and high-net-worth individuals are increasingly adopting cryptocurrency as an investment option.
Moreover, the blockchain innovation underlying cryptocurrency offers numerous advantages, such as decentralized finance, compared to traditional finance, which is becoming more substantial to finance professionals and banking in the territory.
Additionally, the ease and affordability of cross-border payments are attracting individuals to cryptocurrency. In a territory where cross-border transactions can be costly, frequently unclear, and time-consuming, cryptocurrency offers a faster, simpler, and less expensive option.
This service is particularly significant for migrant laborers who seek methods of sending money back to their families in their home countries. In general, a blend of external factors and distinctive characteristics of cryptocurrency are propelling the exponential rise in cryptocurrency adoption in the MENA region.
With ongoing developments in regulatory frameworks and increasing awareness among people regarding the advantages of cryptocurrency, the region’s crypto market is likely to experience even more growth in the years ahead.
Crypto Adoption in the MENA Region
A significant contrast lies in the regulatory landscape. While other parts of the world are grappling with how to regulate cryptocurrency, the United Arab Emirates and neighboring Gulf nations have prioritized establishing a regulatory framework that promotes the crypto market’s growth while complying with anti-money laundering standards.
Consequently, this has fostered a secure atmosphere for financial institutions, companies, and banks to embrace blockchain innovation. However, the territory has a considerable migrant population, and conventional cross-border payment methods can be costly and time-wasting.
In contrast, crypto remittances provide a quicker, simpler, and less expensive option, making them highly favored in the territory. Moreover, the UAE, particularly the ADGM in Abu Dhabi, has surfaced as a prominent global crypto center with strong links to global markets.
As a result, not just retail customers but also important organizations and businesses have been drawn toward crypto adoption.