UAE Leads As More Countries Add Cryptocurrency To National Portfolio

(MENAFN- Khaleej Times)

From bitcoin bonds to nation-wide initiatives, more countries in the world are including cryptocurrency in their national portfolio. The UAE is positioning itself at the forefront with a $50-million investment fund aimed at long-term blockchain, Bitcoin, and tokenisation projects.

“When we invest into projects, we look at those that are stable and can achieve something for the next 10-20 years,” said Abdullah Al Dhaheri, CEO of the Blockchain Centre Abu Dhabi.“We believe in the future, whether it's remittances, tokenised digital assets, Bitcoin on the balance sheet or as a treasury.”

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The UAE has one of the highest crypto adoption rates in the world, with an estimated 30 per cent of residents using digital assets. Abdullah said the next major shift would be in digital asset remittances.“I'm curious to see when fiat currencies begin to vanish and everyone starts looking to stablecoins,” he added.

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He was speaking at the Bitcoin MENA conference, which opened in Abu Dhabi on Monday, bringing together investors, technologists, and policymakers from across the region. He described how UAE regulators have worked closely with institutions and innovators to craft a clear and adaptable framework.“Nobody is going to stop innovation here,” he said.“They adapt to the ecosystem.”

This collaborative approach has helped the UAE become one of the world's fastest-growing digital asset hubs.

Prince Filip of Serbia, Chief Strategy Officer of Bitcoin technology company Jan3, said that many countries were exploring Bitcoin bonds as a way to accumulate reserves. These fixed-income instruments allow governments to invest in Bitcoin and mining infrastructure without dipping into taxpayer funds.

Pakistan's bold move

Pakistan drew significant attention earlier this year when it announced that it would create a Bitcoin strategic reserve and dedicate 2,000 megawatts of surplus energy to Bitcoin mining - enough to power two million homes. Bilal Bin Saqib, Minister of State for Crypto and Blockchain in Pakistan, explained how the country made a bold move to invest heavily in crypto.

“Our currency has taken a hit. If you look at the 10-year chart, it's depreciating. Why should our people be penalised at the expense of a monetary policy that has been created somewhere else? So why should we not adapt and adopt an asset which is not influenced by any politics, inflation or printing?” he asked.

With more than 40 million crypto wallets and one of the world's largest freelancer population paid in stablecoins, Pakistan's young population has embraced digital assets rapidly.“We want to create Pakistan as a case study on how to use excess energy to turn it into digital gold,” he said.

He added that the only regret was not beginning sooner.“Had we set this up a couple of years ago, we would have been in a different economic position today.”

Future and challenges

Looking ahead, Prince Filip said smaller, liberal countries and monarchies are likely to adopt Bitcoin faster than Western economies.“I see the Global South taking the lead, which is fitting because they've suffered most from fiat instability over the last century,” he said.

However, he warned that institutional resistance, especially from the International Monetary Fund (IMF), remains a major obstacle. He gave the example of El Salvador.

“They were one of the biggest public first movers,” he said.“In 2021, they announced that they would adopt Bitcoin as a medium of exchange and also that they would adopt it to release Bitcoin bonds and improve their energy infrastructure. Almost four years later, the IMF comes knocking on the door and says, they have to scale back on their Bitcoin adoption. So it's difficult to get away from the grips and the compromise of the fiat system.”

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