The UAE is attracting big investment not only in cryptocurrencies but in the metaverse space, which is expected to create more than ten thousand additional jobs.
Blockchain market is expected to reach $3.2 billion in the MENA region by 2024, according to a PWC estimate.
The UAE is making efforts to emerge as a leading player in blockchain technology.
Many institutions drafting regulations are trying to make crypto fit into the existing financial system, although cryptos are revolutionizing the financial industry and need a regulatory framework that is adapted to such revolutionary technology.
Protection a priority
With any emerging technology, rules and regulations are constantly developed to protect users. According to blockchain entrepreneur and crypto expert Daniel Yurcho, it is essential to root out different kinds of scams.
There’s definitely a base layer of education that’s needed to protect private keys, e-wallets, cryptocurrencies, and NFTs.
Yurcho, CEO and founder of NexxxtNFT, sees that banks have a role in securing blockchain traders. A few have started to adopt this technology to offer safe transactions.
“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,” Yurcho said.
NFT evolution
NFTs are the most significant trend now. 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 advises focusing on NFTs in the future rather than just trying to buy something traders think will increase in value.
NFTs provide a means for artists 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 work.
Instead, the creator might offer it for sale as an NFT to end users.
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 in UAE
UAE has attracted many crypto trading platforms, tempting investors with its regulatory system and promises of security improvements.
Yet, 2022 wasn’t a good year for crypto, 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.
However, crypto and blockchain expert Jeffrey Krayem believes cryptocurrencies will post a healthier performance in the last quarter of 2022.
