UAE continues to adopt Bitcoin and other virtual assets

By Shilpa Annie Joseph, Desk Reporter
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UAE-based Arabian Bourse’s CEO Arshad Khan has stated that the adoption of Bitcoin and other virtual assets is expected to rise among the significant tech-friendly population amid the growing start-up environment in the country.

As per the reports, Bitcoin dropped sharply after reaching a new high of $61,781.83 as US President Joe Biden signed off on his $1.9 trillion fiscal stimulus and ordered an acceleration in vaccinations. Bitcoin’s new high also came as 10-year US Treasury yields hit a 13-month high of 1.64 percent on the previous Friday.

Arshad Khan
Arshad Khan
‎Co-founder & CEO
Arabian Bourse

“The 60,000 level represents another milestone for Bitcoin, which presents another reason for increasing interest from retail and institutional investors in the UAE. The UAE has been gradually getting more involved in the virtual asset space, as shown by the recent initiatives. The proliferation of Decentralized finance (DeFi) technologies and more recently NFTs is likely to have a further impact on businesses and retailers in the region. The release of comprehensive guidelines and framework by ADGM has also made it easy for investors to trust regulated bodies, which in turn gives individuals and institutions great confidence in the market. Moreover, with an increase in online trading activities over the past pandemic-ridden year, UAE-based investors are likely to diversify their investments by including bitcoin and other virtual assets in their portfolios.”

Bitcoin has rebalanced itself several times over the years, piquing investors’ interest in cryptocurrency as a form of alternative investment.

Kokila Alagh, founder of Karm Legal Consultants said, “Many jurisdictions like the UAE have issued legislation to recognize blockchain-based digital assets, boosting investor confidence even more. Lastly, the announcement of USA’s stimulus package and shift of focus of institutional investors to alternative modes of investments has also boosted the price of Bitcoin.”

Marwan Al Zarouni, CEO of Dubai Blockchain Centre and member of the Dubai Future Council for Blockchain Technology, has commented that the Dubai Silicon Oasis Centre will accelerate digital economy growth as well as talent generation.

He further added, “It currently houses BitOasis, one of the leading exchanges in the region. The DIFC and DMCC — fintech hubs — are the home of several digital assets businesses as well and they will play a pivotal role in positioning Dubai as a worldwide leader in technology adoption and regulatory foresight.”

“There are many more people aware of this emerging digital economy revolving around cryptocurrencies, decentralized finance (DeFi), and non-fungible tokens (NFTs). Moreover, cryptocurrency investment is becoming a part of everyday conversations in the UAE,” Mr. Al Zarouni concluded.

Related: Bitcoin touches $1tn market cap; Soars above other assets