For the last few years, the UAE and Saudi Arabia have been investing heavily in technology. The latter has been hosting a number of investment and technological events and conventions in order to attract tech entrepreneurs from outside and raise them within the country. The “Davos in the desert” and similar events have been gaining popularity all over the world. Similarly, the UAE has been offering huge opportunities for tech entrepreneurs to make their way towards the Emirates and set up companies on the islands.
Staying on top of the recent tech trends, the two oil-rich countries have decided to invest in the creation of a cryptocurrency. The blockchain and the cryptocurrency have been immensely popular with and of great interest to everyone related to the financial and tech worlds. It provides immense opportunities for trade and dealings, and that’s exactly what Saudi Arabia and the UAE wish to exploit.
The Planned Cryptocurrency
The plans for launching the cryptocurrency is underway, with the setup and the functionalities of the soon to be created cryptocurrency being decided by a committee that has an equal number of representatives from both countries. However, some details have come through concerning the scope of the operation and these details point towards a conservative approach rather than a full-on investment in the blockchain.
The revealed aim for the creation of this cryptocurrency is an experimental one. It will be launched and made available to different banks to help them explore the functionalities that the blockchain brings them and discover the opportunities that exist for cross-border payments, along with the implications of the new technology.
More than that, the two countries also aim to use this cryptocurrency and this opportunity to raise awareness of the benefits and implications of cryptocurrency and reveal them to the youth. There’s a clear sense of reverence from both parties for cryptocurrency and a feeling that they understand the importance of what they’re creating. The development of cross-board digital trading and currency, although at an experimental phase initially, points out exactly what the two countries want to do with the cryptocurrency and how they plan on using it.
What it Means for Cryptocurrency
Having two such rich entities collaborating to bring about a new cryptocurrency is bound to send ripples throughout the corporate and technology sectors. While the former would be curious about what the two countries might create, the latter sees a terrific opportunity to invest its interest and focus in. With two of the richest countries creating something of this scale and this ambition, the opportunity is massive for everyone.
However, this does spell trouble for smaller community-based cryptocurrencies. Such cryptocurrencies, such as LIC, are built upon trust and community strength. If the planned cryptocurrency between the two oil behemoths comes to fruition and becomes public, there will be a huge coin in the market that everyone will want a part of. However, it may be a long time before something like that occurs.