It is easy to see why the cryptocurrency market is expanding so rapidly. With the numerous advantages from cheap transaction costs to passive earnings, global adoption continues to grow. As reported by Chainalysis, total transaction volumes increased by over 500% in 2021, reaching $15.8 trillion.
Over the past few years, the Middle East has put a lot of focus on cryptocurrencies, setting itself up to take advantage of the industry’s explosive growth. Today, a specialized government agency in the UAE handles regulation. After the Virtual Assets Regulation Authority was set up, the emirate of Dubai announced a set of rules for virtual assets like cryptocurrencies.
Reports say that major cryptocurrency exchanges are setting up shop in Dubai. Binance has hired more than a hundred people in the Gulf region since moving to the UAE and Bahrain. No doubt, the contributions of cryptocurrency in fostering financial inclusion in the Middle East are evident.
The Cryptocurrency Market And Financial Inclusion In The Middle East
Even though blockchain is still a relatively new technology, it has the potential to make positive political, economic, and social changes and help the poor and desperate around the world. It could end poverty for billions of people, break down inefficient financial structures, encourage innovation and entrepreneurship, and usher in an era when everyone can access the tools they need to build a prosperous economy. Cryptocurrencies, which are decentralized digital money built on a technology called blockchain for a distributed ledger, have called into question the idea that central planning is the only way to run the money system. So, they have the potential to change economies, especially in countries with weak economies.
The crypto economy, which has become a place for global, open financial experimentation, is giving rise to new technologies. These technologies cover value storage, P2P micropayments, lending, margin or collateralization, market making, and price discovery. Millions of people are putting billions of dollars into real-world tests of automated technologies that could one day help billions of underbanked and unbanked people worldwide get financial services that are easy to use and don’t cost much.
Bitcoin is just one example of a huge financial opportunity that can help people improve their standard of living. Bitcoin profitable asset classes, along with gold and other traditional instruments. People who buy and sell assets, manage assets, or invest in assets have the chance to make money.
Anyone with internet access can join a cryptocurrency network right now, even if they have yet to buy or sell cryptocurrency. To support the decentralized distribution and security of any crypto blockchain network, the main ways to take part are to vote and stake in governance, use a block explorer to look at blockchain transactions, run nodes, or mine transactions. The cryptocurrency market is a new, decentralized way to do business with money. These are just a few of the ways crypto facilitates financial inclusion in the Middle East and beyond.
Technically, there should be little stopping you from joining in and getting a sense of the state of the crypto ecosystem for yourself. This can also possibly influence positive change for the greater good of our global community. All of this can be achieved through the development of new business models, cutting-edge educational resources, clear and effective regulation, and a higher level of consumer protection awareness. Everyone can join in the action.
Also Read; TradFi to Crypto: How Abu Dhabi Leads the Financial Revolution
Takeaways
Where a large portion of the population doesn’t have access to banking services, crypto boost financial inclusion in the Middle East. Although traditional banks will be around for a long time, digital money is the currency of the future that will truly set people free. Cryptocurrency is decentralized and easy to use, which increases access to capital and lets people who have never had a bank account join the global financial system.
