The Shift In UAE's Crypto Adoption

Did you know that in the UAE you will soon be able to book flights, purchase property, pay school fees, enjoy staycations, have groceries delivered and pay for sporting events all with crypto??

For many, this has absolutely zero relevance - but for those that hold crypto assets, it is somewhat of a breakthrough in terms of regional adoption.???

For me personally, last month was a milestone moment, (no not because I’m a Luna holder, celebrated my Birthday, or got to officiate one of my sporting idols - Floyd Mayweather in a boxing match), but for the first time, I was able to utilize a crypto debit card (Nexo Wallet) locally here in the UAE.??(Yippie)

Yes, you may think that swiping a debit card isn’t much of an accomplishment, but for regional crypto assets holders, it has always been a challenge.??In fact, applying and being accepted for a crypto debit card is like trying to crack the enigma code, which reminded me of the regional challenges retail consumers faced. Cast your mind back a few years - trying to onboard money to exchanges felt like you were entering a layer of the dark web, until the likes BitOasis and Rain came to the table.??This is something that always frustrated crypto asset holders, especially when living in a city that prides itself on innovation, tech and the future.

Fast forward to the present day, we are seeing a seismic shift in terms of attitude, adoption, and regulatory frameworks here in the UAE (as well as globally).?This newfound focus on digital assets and cryptocurrency means the emirates can capitalize on this sector’s massive growth and become one of the world’s leading global crypto hubs. ??This is echoed on a global level, with aggressive adoption, fewer resistance levels and barriers to entry than before - just look at the below contrast in analysis from JP Morgan that supports this:

2017 – JPMorgan CEO Jamie Dimon says Bitcoin is a ‘fraud’ that will eventually blow up.

2022 – JPMorgan says Bitcoin is undervalued by 28% and Cryptocurrencies are now a ‘Preferred Alternative Asset’

In tangible terms, since the beginning of the year, we have seen the following adoption take place here in the UAE (with supporting links);

Crypto exchanges descend on the UAE as Dubai launches its first digital asset authority.

Dec/March – Binance announces plans to open up a Dubai office and secure a license to operate in Dubai

https://cointelegraph.com/news/it-s-official-binance-secures-a-license-to-operate-in-dubai

?March – Dubai announces the first Virtual assets Regulatory Authority (VARA) ?https://www.reuters.com/world/middle-east/dubai-adopts-first-law-governing-virtual-assets-ruler-2022-03-09/

?*VARA – enters the Metaverse with Sandbox HQ

https://gulfbusiness.com/dubais-virtual-assets-regulatory-authority-enters-the-metaverse-with-sandbox-hq/?

March – Crypto.com and Bybit plan to set up operations in Dubai

https://gulfbusiness.com/crypto-com-bybit-announce-plans-to-set-up-operations-in-dubai/

?April – Kraken secures Virtual Asset License from ADGM to operate in Abu Dhabi

https://www.thenationalnews.com/business/technology/2022/04/25/crypto-exchange-kraken-secures-adgm-licence-to-operate-in-abu-dhabi/

Merchant Adoption and Acceptance ?

?March – Dubai Citizen School (Education) -https://www.arabianbusiness.com/industries/education/dubais-citizens-school-accepts-tuition-fees-in-bitcoin-and-ethereum-payments-as-crypto-enters-middle-east-education-sector

April – Damac (Real Estate) - https://www.damacproperties.com/en/news/damac/dubais-developer-damac-says-will-accept-cryptocurrencies-bitcoin-and-ethereum

April - Nakheel ?(Real Estate) - https://www.arabianbusiness.com/money/wealth/money-wealth-real-estate/nakheel-accepts-crypto-payments-for-rent-service-fees-and-real-estate-purchases-in-partnership-with-hayvn

April – Yallamarket (Grocery Delivery) https://www.khaleejtimes.com/cryptocurrency/uae-delivery-firm-now-accepts-cryptocurrency-as-payment

April – Bake and More (Retail Café) - https://globalcioforum.com/bake-n-more-cafe-accepting-six-crypto-payments-through-mixin-network/

May - Emirates (Aviation) - https://blockworks.co/emirates-airline-to-accept-bitcoin-payments-and-launch-nft-collection/

May - MAF (Retail Conglomerate) - https://gulfnews.com/business/retail/majid-al-futtaim-ties-up-with-binance-for-nft-listings-crypto-payments-1.88262171

May – Ashish & Metha Associates, Solicitors and Legal Consultants (Law firm) - https://cryptoslate.com/dubai-based-law-firm-school-to-start-accepting-crypto-payments/

May - Al Manor hotel (Hospitality) - https://gulfnews.com/business/tourism/dubai-hotel-now-allows-guests-to-pay-using-crypto-currency-after-binance-tie-up-1.1653889210909

Sporting Events

May - Floyd Mayweather – Global Titans Events -https://english.alarabiya.net/News/gulf/2022/04/21/Dubai-to-host-world-s-first-NFT-pay-per-view-sports-event-for-Mayweather-fight-in-May

*Which I had the privilege to work on as a boxing judge and official. (**Special thanks to Abu Dhabi for taking on the event at such short notice and putting on a great show**).

So there you have it, that's over a dozen significant crypto adoption initiatives that we have seen here in the UAE since the beginning of 2022, very encouraging I must say. Furthermore with the ongoing licensing approvals, and office set-up of the leading exchanges moving to the region (Binance, Kraken, Crypto.com and ByBit), I can envisage a huge shift in merchant adoption, consumer payment options and other crypto-related commercial partnerships.