How the middle east and North America are becoming an important epicenter for crypto adoption
The middle east and North America (MENA) sub-region observed the fastest global adoption of cryptocurrency in the past year, based on a report by Chainalysis.
Even though the region is one of the smaller digital asset trading markets, it saw a remarkable increase in 2022. According to a 2022 Global Crypto Adoption Index report, citizens in this subregion obtained $566 billion worth of cryptocurrencies between July 2021 and June 2022–a staggering 48% rise compared to 2021.
When it comes to nations with the most crypto adoption, three of them are situated in MENA – Turkey (12th), Egypt (14th), and Morocco (24th).
As the MENA region continues to expand its education and government initiatives that promote innovation in virtual asset trading and Web3 products, progressive regulations are being passed by countries such as UAE and Bahrain, making the region an essential hub for cryptocurrency adoption.
Besides contributing to the region’s economic competitiveness in the long run, these innovative developments will support job growth while driving the future expansion of cryptocurrency across multiple industries.
Increased focus on remittances, safety, and compliance
The cryptocurrency market in this region has seen unprecedented growth recently, largely attributed to the influx of savings, remittances, and crypto regulations.
Turkey and Egypt are examples of countries that have greatly benefited from such developments due to their currency devaluations (Turkish lira and Egyptian pound). This financial instability has caused many individuals in these countries to turn to cryptocurrencies to protect against inflation.
In 2021, the Turkish lira significantly appreciated by 80.5%, while at the same time, the Egyptian pound declined by 13.5%. Egypt stands fifth in the world when it comes to receiving remittances from other countries within the Arab region and Europe. Also, statistics show that national income derived from this concept amounts to 8% of its Gross Domestic Product (GDP).
Crypto adoption has skyrocketed, with institutions and governments creating initiatives that promote the crypto space. For instance, UAE regulators are using blockchain-enabled solutions to revolutionize judicial proceedings. This includes the Dubai International Financial Centre (DIFC) Courts’ blockchain initiative and the recent integration of ADGM Courts.
The region is paramount for advancing global cryptocurrency due to its tireless attempts to build an efficient regulatory framework that will protect customers and improve market stability, thus restoring trust in the crypto industry.
A look into the future
Undoubtedly, blockchain-based technologies and education on virtual assets have been rapidly growing in MENA. This has resulted in businesses and financial institutions further integrating Web3 into their operations. Binance‘s recent collaborations with Majid Al Futtaim, Jebel Ali Resorts, Palazzo Versace (UAE), and Eazy Pay (Bahrain) demonstrate how these organizations are eager to capitalize on digital currency by providing superior customer experience, convenient payment methods, and optimizing business process flows.
Despite the difficulties that the crypto market endured in 2022, remarkable progress was made with products like NFTs and smart contracts to DeFi applications and GameFi being created that provide unprecedented value for users.
With the dawn of the digital asset space, exciting new features have become available, which include crypto mobile top-ups, colorblind trading solutions, and, most notably, crypto debit cards—which allow customers to spend cryptocurrency directly from their wallets.
As the crypto market marches forward, innovation will be vital in unlocking the next bull market and creating products with more unique utilities; MENA will become instrumental in achieving this feat.
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