The city of Riyadh, the capital of the Kingdom of Saudi Arabia, is the third largest city in the Middle East in terms of population and has recently become one of the tourist cities par excellence.
It is not only characterized by its dynamism and tireless activity in the tourism field, but the expansion has included several areas, including the financial sector, specifically the encrypted digital currency sector.
Several international conferences and events have emerged that took Riyadh as their headquarters, with a global presence, to discuss and research industry prospects in the region.
It is worth noting that Saudi Arabia places digital currencies in the gray zone, as it does not ban them directly and does not receive full approval, which makes accessing them somewhat complicated.
However, research conducted by KuCoin showed that 14% of Saudis between the ages of 18 and 60 own cryptocurrencies, which Murad Ersan, CEO of Takadao, considers an indication of the growing trend of adopting this emerging technology in Saudi Arabia. .
Ersan commented:
You cannot buy or sell easily (of course, talking about digital currencies), however, we are witnessing a rapid growth in the number of cryptocurrency owners!
Cryptocurrencies in Saudi daily life:
Ahmed Youssef, who has lived in Saudi Arabia since 2015, describes the environment surrounding cryptocurrencies as informal, with banks adopting a cautious policy towards them.
He points out that the government is monitoring market developments before making regulatory decisions.
Despite the challenges, Youssef notes that there is great interest in cryptocurrencies among his colleagues, with 20% to 30% of them owning or trading cryptocurrencies.
One finance student points out that banks previously allowed money transfers to platforms like Binance, but then started imposing restrictions due to negative media coverage of Binance's problems.
Orientation towards Web 3 projects and blockchain games:
Prince Faisal bin Bandar bin Sultan Al Saud, President of the Saudi Electronic Sports Federation, launched the “Outer Edge” tournament in Riyadh, expressing his enthusiasm for games and the metaverse.
For his part, Yat Siu, President of Animoca Brands, emphasized the Kingdom’s capabilities, comparing its role in the Middle East to China’s role in Asia.
The Kingdom seeks to foster innovation in Web 3 and gaming as part of Vision 2030, leveraging partnerships such as those with the King Abdulaziz City for Science and Technology (KACST).
Future challenges and opportunities:
Youssef points out that adopting blockchain technology in Saudi Arabia requires continuous education and awareness, with a focus on the practical benefits of this technology beyond cryptocurrencies.
He explains that some wealthy locals are using indirect methods to invest in cryptocurrencies given the current restrictions.
The bottom line:
Riyadh is preparing to be a major center in the field of cryptocurrencies and gaming in the Middle East.
With ongoing economic and technological transformations, Saudi Arabia may become one of the leaders in this field, relying on its wealth, population and influence to determine the future of the cryptocurrency industry in the Arab region and the world.
The article is adapted from cointelegraph magazine.
