Saudi Arabia Uses Crypto Significantly

Due to the widespread use and adoption of cryptocurrencies there, Saudi Arabia is a significant market for digital currencies. This highlights the Middle East and North Africa (MENA) region’s potential for growth.

According to a poll conducted by the cryptocurrency exchange KuCoin, as of May 2022, over three million Saudi Arabians—or 14% of the country’s adult population between the ages of 18 and 60—were crypto investors. These people either now possess cryptocurrencies or have recently traded in cryptocurrencies.

17 percent more respondents were categorized as “crypto-curious,” and it’s likely that they will make an investment in cryptocurrency in the coming six months. The survey’s findings indicate that prospective cryptocurrency investors in Arab countries have a long-term interest in the cryptocurrency business. Nearly half of bitcoin investors in the first quarter of 2022 planned to increase their cryptocurrency investments during the next three quarters.

In the second quarter of 2022, when the bear market started, investor sentiment started to shift in favor of more cautious approaches to cryptocurrency investment. This was a market-driven response. According to a Saudi Arabian study of cryptocurrency owners, 31% of participants said they would like to keep their present bitcoin balance rather than raise it. According to the survey, investors with lower incomes sold some of the securities they had previously accumulated within the same time period.

Never before have there been as many fresh market entrants as there are today in Saudi Arabia. Nearly half of cryptocurrency traders have only recently begun trading, and 76% of investors have less than a year of experience overall. There has never been such a large influx of new competitors.

The study’s conclusions indicate that 63 percent of cryptocurrency investors are men. There hasn’t been a noticeable change in the gender distribution over a number of decades. A minimum of one-third of all cryptocurrency investors are under the age of 30, and as of the second quarter of 2022, that percentage rose to 37 percent.

The other half of cryptocurrency investors engage in monthly spot trading and purchase digital currencies using fiat money. Some Arab theologians only recognize spot trading as halal bitcoin trading. The Saudi Arabian Oil Company (Saudi Aramco), according to a recent report, sparked interest among cryptocurrency aficionados by investing $5 million in a blockchain-based oil trading firm named Vakt the year before. With this effort, which aimed to digitize and automate the post-trade procedures, it was claimed that Saudi Aramco will begin mining Bitcoin (BTC).

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Although the Kingdom of Saudi Arabia has not yet published any formal regulation pertaining to cryptocurrencies, it appears that the administration has adopted a positive stance toward digital assets and blockchain technology.

A new digital currency will be introduced in 2019 according to a joint announcement by the Saudi Arabian Monetary Authority (SAMA) and the Central Bank of the United Arab Emirates (UAECB). Aber is the name of the new money. The cryptocurrency, which would be used to transfer money across the border between the two countries, will be backed by the fiat currencies of the two nations.

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