Omar Bin Sultan Al Olama, the state minister for artificial intelligence (AI), digital economy and remote working applications in the UAE (United Arab Emirates), wrote a part for the banker. In the article, which appeared today, the minister expressed his optimism about a crypto future.
According to the minister, the people involved in the initial development of crypto wanted to “bypass mainstream financial institutions and monetary systems”. However, the minister notes that this would not be a practical or desirable goal.
olama states,
“On the contrary, the future of digital currencies is firmly within the mainstream financial system, where they can make a huge difference to various issues in areas such as payments, banking and investing.”
Olama argues that to realize the potential of crypto, it must be embraced by the financial system. Nevertheless, the minister recognizes that for the industry to thrive, there needs to be some breathing room for the people who bring innovation to the industry.
Olama highlights three key elements of the UAE’s crypto approach. First, they want to encourage the use of digital finance by individuals and businesses. Second, they want to ensure a favorable regulatory and economic environment. And thirdly, they want to stimulate cooperation between industry and countries at a global level.
UAE: The crypto hub of the world?
Minister Olama acknowledges that there are more than 1000 cryptos organizations active within the UAE. Moreover, this number is growing every day. Dubai in particular has attracted many industrial giants to set up shops in the city.
Abu Dhabi is also rapidly catching up with Dubai with many new crypto-based businesses. The emirate is partnering with Attarius Network to integrate blockchain technology, cryptocurrencies and NFTs into the gaming industry. In addition, it aims to become a leading gaming destination.
Minister Olama also highlights the important steps taken in the UAE to push crypto-friendly businesses and regulations. The creation of the Dubai Virtual Assets Regulatory Authority (VARA) is one such example.
According to the minister, alignment and effective communication between global stakeholders are the final pieces of the puzzle to ensure that digital finance realizes its full potential. These comprehensive technologies are global by nature, although regulation and funding often occurs at the national level. Due to the recent exponential rise in technology, regulatory initiatives are currently being pushed to the top of many leaders’ agendas.