Guess Which Arab Nation Is First to Comprehensively Regulate Bitcoins!
It could be argued that nothing has influenced the financial world more than the rise of crypto-currencies ever since the discovery of oil! Different actors in the international community reacted differently towards the crypto-currencies, whether on the state level, corporate level, or individual level. Some panicked and made it illegal, some saw how promising it is and invested in it, and others regulated it.
To begin with, let’s define very briefly what cryptocurrency is. According to Forbes, a cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
For a very simplified and fun demonstration of what the crypto-currency is, you can check out Ahmed Ghandour’s episode in el Da7ee7 about the bitcoin!
According to Cryptocurrency News, The Kingdom of Bahrain became the first Arab nation to comprehensively regulate Bitcoins! A couple of months ago, it was reported that Bahrain had completed its draft regulations for cryptocurrencies. The Central Bank of Bahrain’s website announced that the country is now a safe place to do business with crypto assets.
The rest of the Gulf countries are also paying attention to the future of crypto-currencies; as countries with a high reliance on oil production have a unique incentive to build technological industries. Blockchain offers new opportunities for economic growth as well as the potential to create financial systems independent of the global financial system.
The United Arab Emirates and the Kingdom of Saudi Arabia are currently working on a cross-border payment solution. According to CCN, Dubai is a hub of Arab finance, and several exchanges and crypto companies have set up there including Ripple.