UAE’s minister acknowledges that the future of cryptocurrencies is firmly rooted in the established financial system

Despite the fact that many nations and financial regulators view the cryptocurrency industry with skepticism, some individuals think it has already irrevocably altered the world and that the future of finance is intimately connected to it.

One of them is Omar Bin Sultan Al Olama, the state minister for artificial intelligence (AI), the digital economy, and remote work applications in the United Arab Emirates (UAE), who voiced confidence about the future of cryptocurrencies in an article that appeared in The Banker on September 28.


Embracing the norm rather than finding secondary solutions

Many people involved in the early creation of cryptocurrencies and related technologies, in his opinion, sought to use them to go around traditional financial institutions and monetary systems, but “this is neither a viable nor a desirable goal for obvious reasons,” he said.

As a result, the minister is certain that:

Digital currencies have a bright future within the established financial system, where they can significantly improve a number of issues with payments, banking, and investing.


Omar Bin Sultan Al Olama thinks that in order to make such a future a reality, more breathing room must be provided to those “at the forefront of pushing new technologies (…) while ensuring the necessary regulations that protect consumers and the financial system, and prevent criminal enterprise, are in place.”


UAE’s three-pronged crypto strategy

The minister explained that his nation was focusing on three main components in its strategy: encouraging innovation and adoption, providing a favorable regulatory network, and encouraging global collaboration. He claimed that pushing new technologies while ensuring the necessary regulations was exactly what his country was trying to do.

Specifically speaking about the first component, the minister stated that “the UAE has been nurturing an environment where our citizens feel qualified to explore a new economy of virtual assets, and this is evident from their uptake.”

Considering that “crypto assets and technology (…) need a positive yet powerful regulatory guidance to grow,” he emphasized the recently established Dubai Virtual Assets Regulatory Authority (Vara).

The UAE already “hosts numerous important events in the global blockchain calendar during which we are happy to welcome entrepreneurs, regulators, investors, and other key stakeholders in the global crypto field,” according to Omar Bin Sultan Al Olama, who added this as his third point.

His judgment was this:

If properly applied, cryptocurrency has the huge potential to completely transform the current financial system. (…) The UAE has adopted this strategy and wants to encourage other nations to do the same.


Embracing cryptocurrencies

As reported by Finbold, the UAE is putting cryptocurrency and blockchain technologies to use in a variety of industries, including airlines, charitable organizations, and the battle against financial crime.

Additionally, the nation welcomed Kraken, a cryptocurrency exchange, welcomed an exclusive VIP crypto credit card from VISA (NYSE: V), gave free cryptocurrency domains to all women living in Abu Dhabi, and announced intentions to support up to 40,000 more virtual jobs in the metaverse sector.