MENA (Middle East and North Africa) with countries like #unitedarabemirates , #saudiarabia , #egypt #bahrain, is positioning itself as the driving force for everything #crypto.
I believe the reasons are three fold : –
1) The definition of #crypto as we know it today.
2) The Push from governments and why ?
3) Unprecedented adoption despite all the risks and volatility.
1)The definition of #crypto encapsulates a wide variety of technologies, products and services. A common feature being decentralized control and use of consensus mechanisms to solve and adopt disputes.
* #cryptocurrencies are a representation of a perceived value and described as an alphanumeric set of character stored and transacted on a peer to peer blockchain based network.
#cbdc ,#stablecoins are also considered under the same umbrella, but may have fundamental differences.
* #blockchain networks, (also called “chains”) represent an equivalent of a traditional financial ecosystem with a transacting infrastructure, currency (native coins), messaging standard, clearing and settlement (consensus mechanism). Layer 1 coins/currencies have a network associated with it, like #ethereum, #bitcoin etc.
* #tokens are a representation of an asset and can leverage #smartcontracts to further add capabilities. A native coin like #Ether is a token but not all tokens are coins. Token are usually non fungible, like #NFTs that represent a wide variety of assets that can be traded or exchanged.
* #metaverse , virtual worlds like Meta Decentraland etc. leverage all the above elements and more to offer value to consumers and corporations.
This concept of #crypto is still evolving, and I believe it will look very different in the coming years.
2) The Push from governments and why ?
* #diversifying the oil #economy – #mena, a region whose economy is still dominated by crude oil, needs to diversify and this revolution in the financial sector is being seen as a major pivot to diversify. #unitedarabemirates have a national #metaverse strategy and supported fintechs in this space. #saudiarabia and #bahrain is a strong supporter as well.
* #Attracting talent from across the globe – Countries in MENA, specifically KSA and UAE are doubling down on attracting the tech talent. Visa and tax policies are relaxed and businesses get benefits to run their business in MENA.
* #foreign #investment in the #crypto business
These countries are attracting major investments as well from domestic and international venture funds, making the region breeding grounds for crypto startups.
3) #adoption – A strong #crypto adoption in and out of these countries is a major reason for the growth as well. Serving a global population from MENA is not a farfetched scenario.
MENA will, without any doubt leave its mark on the world of #crypto, and most likely reap the benefits of being an early adopter.