Rather than living in fear of change, the UAE sees the great opportunities that come with the blockchain world, including projects like NFTs.
At the same time, many institutions drafting regulations are trying to make crypto fit into existing financial regulations, though cryptos are revolutionizing the financial industry and need regulatory boundaries that are adapted to such revolutionary technology.
PWC has predicted that by 2024, the blockchain market would be worth a total of US$ 3.2 bn, of that coming from the MENA region.
Big investments could be seen from Dubai, not only in cryptocurrencies but in the metaverse space, aiming to create more than 10K additional jobs.
Yet, with any emerging technology, rules and regulations must be constantly developed to protect users. According to blockchain entrepreneur and crypto expert Daniel Yurcho, it is essential to root out different kinds of scams.
Furthermore, there’s definitely a base layer of education that’s needed to protect private keys, e-wallets, cryptocurrencies, and NFTs.
Yurcho sees that banks have a role in securing blockchain traders. A few have started to adopt the technology to offer safe transactions.
In an interview with TRENDS, Yurcho added: “there’s a lot of opportunities for start-ups and other companies to assist banks, mainly in terms of providing audits on smart contracts or on existing security features.”
NFT evolution
NFTs are the most significant trend recently; CEO and Founder of NexxxtNFT, Yurcho expects in the upcoming five years, they’ll be viewed more as a digital collectible.
One of the biggest hurdles facing Arab investors in the NFT market is finding meaningful projects or technology that provide real value to them or to their communities. Yurcho advised focusing on value NFTs in the future rather than just trying to buy something traders think will increase in value.
NFTs provide a means for artists of art and other forms of media to monetize their efforts. For instance, creatives are liberated from the previous dependence on traditional channels of distribution like galleries and auction houses for the dissemination of their works.
Instead, the creator might offer it for sale as an NFT to end users, keeping more of the money they make.
To further benefit from the sale of their creations, creators can incorporate royalties into their programs. As most artists don’t make any more money after their initial sale, this is a very coveted quality.
Crypto expectations
The UAE attracted many crypto trading platforms to operate on its land, tempting investors with its regulatory system and promises of security improvements.
Yet, 2022 wasn’t crypto’s favorite, with the price crash and concerns of a future crisis. “Investors are becoming more afraid of a possible global recession, especially with weak economic activity data,” Wael Makarem, Senior Market Strategist – MENA at Exness, explained.
Such struggles will not affect UAE’s virtual efforts; traders and investors might save their tokens for the future. However, crypto and blockchain expert Jeffrey Krayem believes cryptocurrencies will have a healthier performance in the last quarter of 2022.
In comparison, 2023 will be un-expectable in terms of the huge growth that will occur, Krayem expects.