30s Summary
The United Arab Emirates (UAE) is leading in innovations in blockchain and cryptocurrency, with initiatives such as creating Shariah-compliant services and a dirham-linked stablecoin. Experts, including Andrew Vranjes from Blockdaemon, Adam Bendjemil from Core DAO, and Jakub Zurawinski from MatterFi, noted UAE’s clear regulatory environment and the influx of talent to the region. Additionally, there is a growing demand for Shariah-compliant crypto services for decentralized finance in the Middle East. Zurawinski added that dirham-pegged stablecoins could enhance UAE’s local payment system, indicating a preference for local methods rather than the US dollar or Bitcoin.
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The United Arab Emirates (UAE) is setting the pace worldwide for creating innovations in blockchain and cryptocurrency. They’re exploring progressive trends like creating Shariah-compliant services and a dirham (UAE’s currency) linked stablecoin. Leaders in the industry confirmed this at recent Bitcoin MENA and Abu Dhabi Finance Week events hosted there.
During those events, pros in the crypto field had discussions about the future of the industry in the Middle East. We heard from guys like Andrew Vranjes from Blockdaemon, Adam Bendjemil from Core DAO, and Jakub Zurawinski from MatterFi, and got their take on what they’ve observed in UAE and the broader Middle East.
Vranjes thinks that handing-off the baton to UAE to be the one launching new blockchain ideas can send the industry into overdrive. He stressed that the UAE is quite clear about regulations, unlike other places. On top of that, he also appreciates the influx of talent moving from London, India, and the Asia-Pacific region to the UAE. Vranjes feels that when you put the right people with the right companies inside a legal framework that’s bulletproof, you’re definitely queueing up for success.
On the other hand, Bendjemil spoke about the demand for Shariah-compliant crypto services, i.e., Islamic finance services that align with Islamic law which prohibits leaning towards debt and lavishness. A lot of people within the Muslim community are looking forward to these services not just for Bitcoin but also for decentralized finance or DeFi. Bendjemil believes that this is an area of growing demand in the Middle East and already builders are strategizing to align with Shariah laws.
Drawn to this, an outfit called Bybit rolled out a Shariah-compliant crypto account, particularly meant for investors who are conscious about staying in line with Islamic law.
As for Zurawinski, he pointed out that stablecoins pegged to the dirham could boost UAE’s local payment infrastructure. In his view, this shows how UAE is preferring local dirham-based methods over using the US dollar or making Bitcoin as a legal tender. He added that although transitioning to Bitcoin as an accepted form of payment could take a while, UAE is not shying away from setting an example and paving the way for innovation in the industry.