If you ask the average wall street banker whether cryptocurrency is sustainable, the answer would not be black and white.
Crypto is a form of currency that scares most traditional banks. But those who know the impact a younger generation can have on global wealth understand that Crypto may very well be the future of currency. Cryptocurrency’s future in the UAE, for example, is looking brighter every year.
FAB Bank Adopted Ripple Protocol
In 2017 the UAE rose in the cryptocurrency debate atop the levitating saucer that is Ripple. More specifically, Abu Dhabi’s FAB Bank adopted the Ripple protocol for all cross-border transactions.
Most who are familiar with Ripple know that the company is striving to provide a “frictionless experience to send money globally using the power of blockchain.” In 2017, FAB Bank clearly indicated a serious interest in providing a better experience for its customers who would prefer to send money abroad without the delays of traditional baning methods.
According to Live Bitcoin News, FAB listened more to bank leaders and its customers who agreed that the blockchain method was the faster, safer way to do this, vs the traditional voices who said it was taboo.
Ripple facilitates cross-border transactions and can be used to also complete money transfers across multiple distributed ledgers.
The National Bank of Abu Dhabi stated it would integrate Ripple into it’s existing infrastructure and became the first Middle Eastern bank to adopt a protocol like this. FAB Bank instantly became a standard in leading the way to a modern banking experience for a new generation.
Using Ripple, FAB customers would then be able to transfer money to beneficiary accounts instantly. With the UAE being one of the top global remittance-sending countries, the FAB’s use of the Ripple tech would be broad spanning.
Ripple went on to partner with several other Middle Eastern financial institutions in Kuwait, Saudi Arabia and Bahrain.
The UAE Registers its First Cryptocurrency Exchange
Dubai joined the crypto wagon in 2018 when Al Zarooni Group and Crypto Bulls announced their partnership to launch the Crypto Bulls Exchange.
In their announcement, Shasha Gupta, CEO and Founder of Crypto Bulls Exchange, claimed that the industry would continue to grow in the country, gaining over 200,000 traders in the six months prior to the launch.
Both Gupta and Chairman Suhail al Zaroon of the Al Zaroon Group stated that the exchange would bring more global investment into the UAE, specifically from Asia and the Middle East.
The current blockchain strategy in the UAE aims to have 50 percent of all government transactions processed via blockchain by 2021.
The UAE also has backed Emcash, a new digital currency to enter the crypto market. At the moment, the UAE has settled itself among Malta, South Korea and Singapore as the leaders in blockchain and crypto industries.
Dubai Royal Family Launches Crypto Backed by Diamonds
Also in 2018, Al Kasir Group announced that it had partnered with the private office of HH Sheikh Ahmed Bin Obaid Al Maktoum in a joint venture. Al Kasir Group claimed the new venture was a diamond trading model that utilized the blockchain digital ledger tech also used by bitcoin.
The group announced an offering of three assets, Al Mas, Al Haqeek, Al Falah, all backed by IGI. These assets would be sold for between $250-$250,000. Against these assets, customers would receive IGI certified diamonds. The crypto assets could be used to purchase goods like precious stones and perfumes from the company’s online shopping portal.
Dubai’s Regal RA DMCC Receives First ME Crypto Trading Licence
In Feb of 2018, Dubai’s gold trader, Regal RA DMCC, received the first Middle Eastern crypto trading license. The company was set to trade bitcoin, ethereum and other cryptocurrencies from their vault in Jumeirah Lake Towers.
Through it all, regardless of what global fears revolve around cryptocurrency, it seems that the UAE is reluctant to not join in on the future’s trading commodity and banking opportunities.
At least for the UAE, the introduction of crypto in a variety of facets seems to be working and the country is already ahead of western banking and trading companies in that respect.