The Middle East and North Africa (MENA) area saw a 48 per cent rise in the volume of cryptocurrency received, the largest in the world, according to the Chainalysis 2022 Global Crypto Adoption Index. Based on the report, which was driven by emerging markets, individual investors in the Mena area received $566 billion in cryptocurrencies over time, a growth of 48% annually.
In contrast, crypto transactions increased by 36% in North America, 40% in Central and Southern Asia, and 40% in Latin America. Growth in other areas was only 22% or less. Three of the top 30 nations on this year’s Crypto Adoption Index are located in the Mena region: Turkey (ranked 12), Morocco (ranked 14), and Egypt (ranked 24).
The appeal of cryptocurrencies for the preservation of money has grown as shifting cryptocurrency values have overlapped with the sharp depreciation of fiat money in Turkey and Egypt. The Lira has grown by 80.5% in the past year, while the Egyptian Pound declined by 13.5%.
According to Kim Grauer, director of research at Chainanalysis, the country’s adoption of cryptocurrencies and Web3 technologies is fuelled by Government support, regulations oriented toward the future, measures for consumer protection, and support for developing crypto enterprises.
This article will explore some factors accelerating the growth of cryptocurrency adoption in the Middle East and North Africa region.
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MENA: On Becoming the World’s Fastest-growing Cryptocurrency Market
The Gulf Cooperation Council (GCC) states are fast affirming their status as major players in the cryptocurrency sector, as shown in the Chainanalysis research. For instance, Saudi Arabia is Mena’s third biggest crypto market, and UAE is it’s fifth. They are further associated with the world’s cryptocurrency markets.
The MENA region has less stringent regulations than others, encouraging more people to join a decentralized digital economy. Another factor causing cryptocurrency to prosper in these nations is that over 55% of the population is under 30. Younger, tech-savvy individuals are more keen to adopt new financial and technological advancements, including cryptocurrency.
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Additionally, the MENA area is undergoing a social and economic transformation, with many nations experiencing unequal income distribution and high youth unemployment rates. The populace is therefore looking for alternate financial tools.
With their inhabitants receiving $192 billion, Turkey was the Mena region’s biggest cryptocurrency market. The researchers noted that this suggested a sluggisher yearly growth rate of 10.5% compared to other countries in the region. Conversely, Egypt has the Mena region’s fastest-increasing cryptocurrency market, with annual transaction volumes jumping by 221.7%. In the Mena area, Lebanon came in third place in terms of the number of cryptocurrency transactions, which increased annually by 120.9 per cent, behind Morocco (120.8 per cent), the United Arab Emirates (UAE), which increased by 37.2%, and Turkey (10.5%).
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In conclusion, more blockchain and cryptocurrency-based enterprises will relocate to the region as regulators adopt the idea of a fully digital and decentralized economy, enabling the sector to expand further in 2023 and beyond. This global growth will undoubtedly increase the market value of the MENA area because the market is growing more rapidly there than everywhere else. Particularly the Gulf nations have demonstrated a keen interest in embracing cryptocurrency and blockchain startups.
