Unlike today, the use of blockchain services was not so mainstream in the Middle East. Now, this region is one of the hottest spots for everything blockchain. With suitable structures and necessary readjustment, MENA has become the fastest-growing crypto market in 2024.
When we talk about Blockchain, we are talking about every blockchain-related service. They include cryptocurrencies, NFTs, and decentralized finance. Blockchain is changing the status quo in a region where many don’t have access to financial services.
This article is not centred on how far Blockchain has grown in the Middle East. Instead, by highlighting the leading blockchain trends, we will know the position of Blockchain now.
Leading Blockchain Trends in the Middle East
The Chainanalysis report reveals that the Middle East is driving mass adoption of blockchain services. The mass adoption has been a beneficiary of the following leading blockchain trends:
1. Licencing of Digital Platforms
Digital platforms make access to blockchain-related services easier for end users. Some platforms provide services like a crypto exchange and NFT gaming. Over the last few months, countries in MENA licensed digital platforms to ease the region to be more digitally inclined. For instance, GLECC, a crypto platform, obtained five regulatory licenses to set up Blockchain and financial infrastructures in the Middle East. Similarly, other digital platforms like Binance and Kraken gained regulatory approval in 2024 to provide blockchain services to residents of the Middle East.
2. Increasing in Digital Transactions
Another major blockchain trend in the Middle East is the rise in digital transactions. Between July 2021 and June 2024, the Middle East accounted for 9.2% of global digital currency transactions. This seemingly small number looks different when you consider that transactions went about 48% higher than the year before. In addition, the country is exploring central bank digital currencies. For example, the United Arab Emirates and Saudi Arabia partnered on a pilot project to launch a domestic and cross-border settlement using a single regional currency. This collaboration makes it the first dual-issued CBDC implemented on a blockchain.
3. Regulating the Digital Landscape
Establishing flexible regulatory frameworks on digital platforms is another leading blockchain trend in the Middle East. Regulating digital services allows governments to ensure fair use while maximizing their potential benefits. One MENA country especially dedicated to good regulatory frameworks is the United Arab Emirates. It launched a Virtual Assets Law and established the Dubai Virtual Assets Regulatory Authority.
Looking forward
Although Blockchain is already a part of our everyday life around the globe, the same cannot be said for the entire MENA region. The major countries at the forefront of blockchain innovation are United Arab Emirates, Saudi Arabia, Bahrain, Egypt, Turkey, etc.
The MENA region is yet to accept Blockchain as a whole. We can only hope that the MENA countries yet to embrace the concept of Blockchain can take a cue from their regional counterparts.
