Following the example of Dubai’s first crypto listing on the Nasdaq Dubai, the Bank of Israel engaged in a new technology venture by launching a digital shekel currency in July 2021. The financial experiment should bring several benefits to the Israeli economy, like updating the country’s payment system, which is about a decade behind other countries, as Andrew Abir, Deputy Governor of the Bank of Israel, said to announce this new pilot project.
Ethereum As A Financial Pilot Project In Israel
The payment field is growing due to the quick evolution of internet-based platforms for commercial, health, or entertainment purposes. These three categories of services account for a high number of financial transactions online. People who want to buy an item, get a medical service, or place an online bet on a football match need a quick and smooth payment system to process safe payments online.
Mr. Abir is aware that significant changes will happen in the financial world in the next few years. His message is clear: the Bank of Israel must get ready to face those new changes and offer Israeli clients high-level financial services. The new digital currency Ethereum can have a positive effect on the economy.
However, Qatar’s Chief Investment Authority Mansoor Bin Ebrahim Al Mahmoud thinks that the region of the Middle East should wait for a little while before investing in cryptocurrencies. In the meantime, a survey about UAE investors shows that Arabs are subject to growing exposure to digital currencies between 2020 and 2023. As the survey suggests, at least five in ten UAE users are likely to use digital currencies. Moreover, 63% of the interviewed subjects feel more confident with cryptocurrencies at present than they were a year ago.
One of the most significant fields where they would use digital currencies is the online sports betting environment. Today, the best bookmakers in the middle east offer plenty of payment methods, including cryptocurrency payments. The virtual market of sports betting is currently at one of its highest peaks, and it may soon turn into a cryptocurrency-oriented industry within the next few years.
MENA Countries Are Home To A Rising Crypto Industry
It shouldn’t be shocking that the MENA region is leading the industry of cryptocurrencies in the world. While the west is often seen as home to global technology, the Middle East is emerging by pushing the blockchain and digital assets with impressive progress. How is the region becoming home to the rising crypto industry?
Several factors have led to the rapid evolution of digital currencies in the countries of the Middle East. First, the region’s governments are encouraging local companies to embrace blockchain and promote its use. For example, the UAE has a written Emirates Blockchain Strategy for 2021 which is designed to bring half of all government transactions on blockchain technologies by the end of 2021. Also, Dubai’s Multi Commodities Center (DMCC) launched its Crypto Center at the beginning of the year to support companies in the field of blockchain and cryptography. The Saudi Arabian Monetary Authority is also promoting the use of blockchain for money transfer, giving the country the pride of being one of the first in the world.
The general acceptance and support of blockchain and crypto-oriented companies reveal that the Middle East has engaged in a new path for the region’s economic growth.
Benefits From Using A Cryptocurrency For The Citizens
While some countries have engaged in a fight against the use of cryptocurrency transactions, there are clear benefits from using crypto money for the citizens. One of the most remarkable benefits is that digital currencies aren’t subject to bank regulations or any other restriction as banked money. This is particularly important for Arab sports bettors in Sharia-compliant countries where gambling websites are banned, and the citizens are punished for their financial activity on those sites. A cryptocurrency transaction doesn’t require all the information to identify the user and transfer the money: the lack of a verification process preserves the user’s anonymity. The transaction can be tracked only through a blockchain address (the user can have multiple addresses).
More benefits from using cryptocurrencies include user autonomy as their price isn’t linked to government policies that may cause runs or crashes, which happens with banked money. Cryptocurrency transactions don’t incur any fees or account maintenance costs, but only a low transaction fee is required for international payments. Finally, the users don’t need to own a bank account to use cryptocurrency, which is helpful for those who can’t open a bank account for any reason.