Cryptocurrencies in the Middle East and North Africa have made significant progress over the last year. This development can be seen in various applications, including the institutional use of cryptocurrencies in the UAE and remittance payments in the Egyptian market. It’s clear that the MENA, and other emerging regions, will be significant players in the future of the cryptocurrency industry.
In a recent analysis, blockchain analytics firm Chainalysis identified the Middle East and North Africa (MENA) as the area with the most rapidly expanding cryptocurrency sector. Between July 2021 and June 2022, MENA area users made $566 billion in cryptocurrency transactions, showing an increase of 48% over the prior year. The MENA cryptocurrency sector is unique because of the region’s high level of security and the low cost of trusted services. In addition, Dubai’s recently passed virtual asset legislation has been hailed as a model for other countries to regulate cryptocurrencies and safeguard investors.
MENA: The Hottest Crypto Market Right Now
The Middle East and North Africa (MENA) market dominated the cryptocurrency sector in 2022. Due to the instability of the economy and currencies of many MENA nations, Bitcoin and other virtual currencies are seen as promising alternative investments. Finally, the MENA area as a whole is beginning to realize the possibilities presented by blockchain technology, which should encourage wider cryptocurrency adoption. Chainalysis found that transaction volumes in Saudi Arabia increased by 195%, demonstrating the country’s promising future.
Also read : How MENA Became the World’s fastest-growing Crypto Market
Three Leading Crypto-Adopting Nations In MENA
Turkey, Egypt, and Morocco are three of the top 30 countries on the 2022 Crypto Adoption Index. The fast depreciation of national currencies in Turkey and Egypt, and the volatility of cryptocurrency prices, have increased demand for this kind of investment to protect wealth. The Turkish cryptocurrency market was the largest in the MENA area, with $192 billion sent to its residents. Regarding yearly transaction volume, Egypt’s cryptocurrency sector has been expanding at the highest rate, at 221.7%. Egyptians are increasingly turning to virtual currencies as a haven for their valuables. It’s tempting to use cryptocurrency as a hedge against currency depreciation.
Key Factors Pushing Crypto Adoption In The GCC
A distinct set of factors is pushing the adoption of cryptocurrencies in the GCC than in the rest of MENA. It is evident from the market data in the GCC that early adopters in the region are young, tech-savvy high-earning believers in cryptocurrency who are actively looking for investment possibilities. Not only have consumers and small companies embraced cryptocurrencies, but large financial institutions like banks have also started collaborating with crypto enterprises. The government’s encouragement of cryptocurrency and Web3 technology adoption, as well as its forward-thinking legislation, consumer protection systems, and encouraging crypto firms, are all factors driving this trend.
