The United Arab Emirates (UAE) is emerging as a world leader in blockchain payment adoption, driven by progressive regulations, exciting new solutions and massive investment.
Companies such as Ripple and Mastercard have recognised the potential, making the Emirates a hub for blockchain-driven financial transformation.
This movement will force stakeholders to rethink traditional banking and payment systems while opening a path for industries such as iGaming to capitalise on the budding blockchain economy.
The UAE’s Blockchain Revolution
Managing Director of Ripple for the Middle East and Africa, Reece Merrick, recently noted that the UAE is a driving force behind blockchain adoption globally.
The use of stablecoins, blockchain advancements and government backing, among several other factors, have helped make the UAE a hotspot for crypto enthusiasts and entrepreneurs.
Unlike most countries that have unjustly separated their traditional finance sector from the blockchain space, the UAE has merged these two through tokenisation and stablecoin adoption.
The Emirates has thrown its weight behind Dirham-based stablecoins, which are changing the game of cross-border payments across the Middle East, South Asia and Africa.
These digital assets make moving money faster and more secure for all parties. They also include individuals typically excluded from the traditional banking system, making the UAE a lynchpin for financial flows.
Before the end of this year, blockchain will be embedded in banking systems across the Middle East and North Africa (MENA), with Saudi Arabia, Bahrain, Qatar and Morocco joining the digital revolution.
Innovations Driving Adoption
Mastercard recently introduced its new Crypto Credential solution in the UAE, which will help simplify and better secure blockchain transactions.
The system replaces the typically lugubrious blockchain addresses with user-friendly aliases, reducing errors and helping to build trust in digital payment.
Mastercard Executive Vice President and Head of Core Payments for the EEMEA region, Gaurang Shah, believes this initiative will make cryptocurrency transactions safer.
Shah said: “As the cryptocurrency landscape continues to mature, we’ve been laser-focused on developing innovative services and capabilities that help make crypto more accessible and secure, streamline the transaction process and enhance trust in the ecosystem.”
“In bringing Mastercard Crypto Credential to the EEMEA region, we’re delivering on our vision to increase and instil trust in blockchain technology while also transforming how people interact with digital assets.”
The programme is already pulling in prominent players such as CoinMENA and Intebix. Besides basic peer-to-peer transfers, the Crypto Credential will also be useful ticketing and other digital transactions.
With all these innovative solutions brewing, the Emirates has shown that it is keen on bridging the gap between blockchain technology and traditional finance, paving the way for other sectors to embrace these advancements.
Blockchain and iGaming is the Perfect Match
The iGaming industry stands to benefit from the UAE embracing blockchain technology.
The UAE has already taken steps towards legalising gambling, establishing the General Commercial Gaming Regulatory Authority (GCGRA) to institute a framework and issue licences.
The GCGRA will allow iGaming companies to explore new payment solutions such as blockchain technology.
This move falls in line with the UAE’s quest to become a technology-first economy as it looks to move away from its long-standing over-dependence on its crude oil reserves.
Operators looking to establish the best online casino in Dubai can potentially thrive in this encouraging environment.
Blockchain has inherent features such as transparency, security and speed, making it an ideal payment solution for the iGaming industry.
Players want to make deposits and withdrawals across borders seamlessly using cryptocurrencies. They wish to avoid the pitfalls of traditional systems, such as bloated transfer fees, while enjoying better security around their transactions.
Blockchain also allows players to tokenise their in-game assets, making it possible to own, buy and sell digital items.
The UAE has adopted this forward-thinking approach and is bound to attract international iGaming operators already well-versed in running blockchain payment options in their backend, driving innovation and growth.
The UAE looks poised to become a major hub for blockchain gaming solutions, and as trendsetters in the MENA region, expect other countries to take a leaf from their book.
Expanding Blockchain’s Reach
Blockchain is also being proffered to tokenise real-world assets (RWAs).
MANTRA has partnered with Dubai-based DAMAC Group with plans to tokenise over $1 billion worth of assets in the Middle East, leveraging blockchain to improve liquidity and accessibility in the real estate market.
Tokenisation allows individuals to own fractions of an asset, making investments more accessible. A multi-million-dollar real estate property can now be divided into digital tokens, and individuals can buy portions of the entire asset.
This advancement will democratise investment opportunities and improve market liquidity, attracting more local and international investors.
However, tokenisation of assets cannot work without robust regulatory frameworks. The UAE has launched the Dubai Land Department to give real estate transactions a platform, creating a supervised and cohesive digital asset ecosystem.
