Omar Bin Sultan Al Olama, the state minister for artificial intelligence (AI), digital economy, and remote-work applications in the UAE (United Arab Emirates), wrote a piece for The Banker. In the article, which was published today, the minister expressed his optimism regarding a crypto future.
According to the minister, the people involved in the initial development of crypto wanted to “circumvent mainstream financial institutions and monetary systems.” However, the minister notes that this would not be a practical nor desirable goal.
Olama states,
“Rather, the future of digital currencies lies firmly within the mainstream financial system, where they can make an enormous difference to several problems in areas such as payments, banking and investing.”
Olama states that in order to realize the potential of crypto, it has to be embraced by the financial system. Nonetheless, the minister acknowledges that in order for the industry to thrive, there must be some breathing room for the people who are bringing innovation to the industry.
Olama highlights three principal elements of UAE’s crypto approach. Firstly they want to encourage the use of digital finance by individuals and businesses. Secondly, they want to provide a favorable regulatory and economic environment. And thirdly, they want to encourage collaboration between industry and countries on a global level.
UAE: The crypto hub of the world?
Minister Olama acknowledges that there are over 1000 crypto organizations operating within the UAE. Moreover, this number is growing every day. Dubai in particular has attracted many industry giants to set up shops in the city.
Abu Dhabi is also quickly catching up to Dubai with many new crypto-based businesses. The Emirate has partnered with Attarius Network to integrate blockchain technology, crypto, and NFTs into the gaming industry. Moreover, it intends to become a leading destination for gaming.
Minister Olama also highlights the significant steps taken in the UAE to push crypto-friendly businesses and regulations. The setting up of the Dubai Virtual Assets Regulatory Authority (VARA) is one such instance.
As per the minister, alignment and effective communication across global stakeholders are the last pieces of the puzzle to guarantee that digital finance realizes its full potential. These expansive technologies are by their very nature global, even though regulation and funding frequently happen at the national level. Because of the recent exponential increase in technology, regulatory initiatives are currently being pushed to the top of many leaders’ agendas.