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UAE crypto trends include Shariah compliance and dirham stablecoins

UAE crypto trends include Shariah compliance and dirham stablecoins

GrafaGrafa2024/12/18 09:10
By:Mahathir Bayena

The United Arab Emirates (UAE) is positioning itself as a significant player in the global blockchain and cryptocurrency market.

Industry leaders highlighted several key trends shaping the region’s crypto future, including Shariah-compliant services, dirham-pegged stablecoins, and the migration of international talent.

At the recent Bitcoin MENA and Abu Dhabi Finance Week events, professionals discussed the growing potential of the region in the blockchain space.

Andrew Vranjes, Chief Revenue Officer at Blockdaemon, referred to the UAE as a “launchpad” for blockchain projects, pointing out the country’s regulatory clarity.

“Our expectation for this market is that it’s going to move much faster. This market’s going to leapfrog ahead in global rankings really quickly,” said Vranjes.

He also mentioned the growing influx of talent from London, India, and the Asia-Pacific region, which has contributed to the UAE's competitive edge in the sector.

Another key trend is the demand for Shariah-compliant crypto services, particularly in decentralised finance (DeFi).

Core DAO’s Adam Bendjemil explained that Shariah compliance is vital for the Middle East, as Islamic finance principles prohibit interest-based lending.

“Shariah compliance will unlock many possibilities for a lot of people in the Islamic world, and probably beyond that because projects are about to be ethically aligned,” he said.

Many developers are already creating strategies for aligning with Shariah law, and Bybit introduced a Shariah-compliant crypto account in September to cater to the growing demand.

Jakub Zurawinski of MatterFi pointed to the potential of dirham-pegged stablecoins to strengthen the UAE’s local payment infrastructure.

On October 18, the country’s central bank approved a stablecoin issuer for a dirham-pegged stablecoin, a move showing the country’s focus on enhancing local payment systems.

Zurawinski also acknowledged that while adopting Bitcoin (CRYPTO:BTC) as legal tender may take time, the UAE is demonstrating how innovation in the crypto space should be approached.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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