The MENA region's cryptocurrency boom: From institutional investors to individual payments.
The past year has seen significant growth for cryptocurrency usage in the MENA region, from institutional investors in the United Arab Emirates to individual remittance payments in Egypt.
The MENA region has seen a surge in interest in cryptocurrencies and blockchain technology in recent years. With a number of countries in the region experimenting with blockchain-based projects, it is clear that there is a growing appetite for these innovative technologies. There are a number of factors driving this trend, including the region's high levels of mobile and internet penetration, as well as a young and tech-savvy population.
The MENA region is quickly becoming a hub for cryptocurrency activity, with transaction volume increasing by 48% in the last year. This trend is likely to continue, as more and more people in the region adopt crypto assets as a way to store and transfer value. With $566 billion worth of crypto changing hands in the region in the last year, it's clear that the MENA region is poised to become a major player in the global crypto economy.
The global market for mobile games is expected to continue growing rapidly in the coming years, with the MENA region leading the way. Latin America and North America are also expected to see strong growth, with increases of 40% and 36% respectively.
There is no doubt that cryptocurrencies are gaining traction in many different parts of the world. In the Middle East and North Africa region, there are approximately 22 countries where cryptocurrencies are beginning to find practical use cases. This includes countries like Morocco, Egypt and Turkey, which are considered emerging markets. In these countries, cryptocurrencies are being used for savings preservation and remittance payments. This is a positive development, as it shows that cryptocurrencies are becoming more mainstream and are being used for real-world purposes.
The use of cryptocurrencies is on the rise in countries where the local currency has been devalued. In Turkey and Egypt, where the local currency has lost value, crypto is being used more and more to preserve savings and send remittances. This trend is likely to continue as more people realize the benefits of using crypto.
Cryptocurrency is becoming increasingly popular in Egypt, with transaction volumes tripling in the past year. This can be attributed to local economic volatility, with Egypt seeing a year-over-year growth of 221.7% in crypto transaction volume. Turkey is the largest crypto market in the region, with $192 billion in crypto received within the reporting period.
The wealthier countries of the MENA region, such as the Gulf nation of the United Arab Emirates (UAE), have also been contributors to the local crypto scene, though in a different capacity. The UAE, home to the crypto haven of Dubai, has been a major player in the development of the crypto industry in the region. The country's positive attitude towards cryptocurrencies and its supportive regulatory environment have helped attract many blockchain and crypto businesses to set up shop in Dubai.
It is clear that Saudi Arabia and the UAE are both leaders in the cryptocurrency space, with both countries receiving a large amount of value in crypto assets. This is a positive sign for the future of cryptocurrency in the region, and both countries are well positioned to continue to lead the way in this burgeoning industry.
When it comes to these Gulf nations, however, crypto can be seen more in large institutional usage rather than person-to-person payments like remittances. This is because the infrastructure for crypto is still being built in these countries and there is more institutional interest in the space.
The UAE is quickly becoming a major hub for cryptocurrency and blockchain companies. Binance is the latest to receive approval to set up operations in Abu Dhabi and Dubai, along with neighboring Bahrain. This is a major vote of confidence in the UAE's growing crypto ecosystem.
This is a great partnership that will allow local entrepreneurs to set up businesses using crypto. This will help the UAE become a more attractive destination for businesses and investors.