By Richard Hines
The United Arab Emirates (UAE) is looking to improve its trading policies by fully embracing cryptocurrency.
In an interview, the Minister of state for foreign trade, Al-Zeyoudi stated that he sees the utilisation of crypto contributing immensely to the welfare and economy of the UAE.
UAE Buying Into Crypto Technology For Economic Growth
In a move that reflects the growing interest in crypto among Gulf states, Al-Zeyoudi said that the UAE sees a key role for digital currencies in the country’s economy.
He stated that the government is committed to promoting creativity and embracing new technologies and that cryptocurrency is a tool that will drive the use of this technology to foster growth in the nation’s economy.
The UAE’s interest in crypto is not a thing of surprise. In 2018, the country’s central bank announced that it was working on a project to develop a digital version of the country’s currency.
The central bank’s governor at that time, Mubarak Rashed Al Mansouri, stated that this digital currency would be used for transactions between banks, and deployed based on blockchain technology.
However, the use of cryptocurrency in the UAE is still not yet widely accepted.
This is partly due to a lack of regulation, as the country’s central bank has not released efficient and clear guidelines on cryptocurrency regulation in the nation.
However, with this interest shown by the country in crypto, it is most likely the country’s economy will be impacted in a good way in years to come. The country’s economy is heavily dependent on oil exports, but the government is looking to diversify and find new sources of revenue, in which crypto could play a huge major role.
Other Gulf States Utilizing Crypto In Their Countries
The UAE’s move towards embracing crypto also follows suit after other Gulf states such as Bahrain, Kuwait, Oman and Qatar started picking interest in the technology.
In 2019, Bahrain’s central bank announced that it was working on a regulatory framework for crypto, while Qatar’s central bank stated that it is looking at ways to implement blockchain technology to develop the nation’s financial operations.
Overall, the UAE’s move to boost its trading policies by embracing cryptocurrency is a positive step for the country’s economy and for the wider region.
Cryptocurrency has the potential to drive and propel economic growth in the country and also improve trading and investments.