Abu Dhabi launches blockchain and cryptocurrency institution

Abu Dhabi has launched a new association backed by the Emirate’s Financial Free Zone to accelerate the development of blockchain and cryptocurrencies in the region.

Middle East, Africa and Asia Crypto and Blockchain Association (MEAACBA), a non-profit organization supported by Abu Dhabi Global Marketdesigned to bring industry players together to discuss strategies and address the industry’s biggest challenges, while also integrating digital assets into key economic sectors.

The ADGM-based association counts major cryptocurrency platforms such as Mubadala-backed Medium chainin Dubai Bit OasisBahrain rain, Crypto.com and Binanceamong its partners, the world’s largest cryptocurrency exchange by trading volume.

“The UAE is moving towards becoming one of the best international financial centres and we want to be a recognised contributor to the diversification and continued growth of the UAE’s economy,” ADGM Chairman Ahmed Al Zaabi said in his remarks at a launch event in Abu Dhabi on Tuesday than the events held.

“We strongly believe that MEAACBA will continue to contribute to strengthening the UAE’s digital economy and adoption…and will have an impact in the region and globally.”

The move places Abu Dhabi and the UAE at the forefront of innovation, in line with the government’s goal of capitalizing on the ongoing digital transformation towards a knowledge-based and smart economy.

Blockchain is the underlying technology behind cryptocurrencies and decentralized finance, and is often considered to be the Safer way to trade And it could eventually replace middlemen in the financial system, such as brokers and banks.

As part of its efforts to develop the economy of the future, the UAE has taken several steps to integrate blockchain into the economy, government and society.

Blockchain in particular has received particular attention, with the government developing several initiatives, including the UAE Blockchain Strategy 2021 and the Dubai Blockchain Strategy, as well as the formation of the Global Blockchain Council.

Last year, ADGM revealed its plans Double the number of its cryptocurrency exchanges Expand online asset trading options for investors.

Global cryptocurrency exchanges such as Binance, Siren and eToro Seeking to tap the potential of the UAE’s cryptocurrency market, they flocked to ADGM for an operating license.

According to government data, the UAE’s digital economy contributes 4.3 percent to the national economy.

The UAE has also been on the rise as a recognized global cryptocurrency hub. It is now one of the five countries with the highest adoption rates, with an annual transaction value of $25 billion, according to consulting firm PricewaterhouseCoopers.

Meanwhile, the wider MENA region is the fastest growing cryptocurrency market in the world, accounting for 9.2% of the world digital currency transaction From July 2021 to June 2022, according to blockchain data platform Chainalysis.

The global blockchain market is also booming and is expected to grow to $7.18 billion this year and $164 billion by 2029, a compound annual growth rate of over 56%, according to Fortune Business Insights , while the compound annual growth rate in 2021 is about $4.7 billion.

The capital will also host Inaugural Middle East Blockchain Awards During this month’s Abu Dhabi Financial Week.

The new association is keen to address the challenges of the cryptocurrency industry, especially now that it is experiencing what has been called a “crypto winter,” or a cooling market where Bitcoin fell below the key psychological $20,000 level in June and wiped out the industry’s The total market fell by $2 trillion, bringing it below $1 trillion.

Bitcoin, the world’s first and largest cryptocurrency, was trading around 5 percent lower at $19,773.73 at 2 p.m. UAE time on Tuesday, according to Coinbase.

“This is an extremely important time for cryptocurrencies. Jehanzeb Awan, president of the new association and founding partner and CEO of Dubai-based financial advisory firm J Awan & Partners, said:

“Business is built on principles, not seasons, so it takes a lot of effort to bring all the industry players together.”

The association’s goals include conducting educational activities and coordinating with local and global partners to develop an accessible, transparent and industry-standard framework for the blockchain ecosystem.

This will involve collaborating with industry players in participating regions, including exchanges, consulting firms, technology developers, digital asset traders, and companies working on Metaverse and non-fungible tokens.

“The only way we can run an efficient ecosystem is to have everyone on the same page,” Mr Awan said. “We obviously can’t fix everything, but we can sit down and talk and point in the right direction.”

The association will also host competitions looking for companies to develop solutions to real economic problems. Winners will have the opportunity to receive industry support and network with investors.

Updated: November 8, 2022 11:20 AM