As the UAE advances in regulating digital assets, around 67 percent of UAE nationals want to invest in cryptocurrencies by 2022. One-fifth of consumers said in a survey last month that they planned to trade cryptocurrency in the UAE. In addition, 21% want to exchange digital assets in the coming 12 months.
In the western crypto market, people expressed a lower level of confidence in cryptocurrency. In the United Kingdom, 6% of people trust cryptocurrencies, while 11% in Italy and 9% in France. Emirati consumers’ trust in cryptocurrencies is a vital factor in their decision-making. The enactment of virtual asset law in the UAE and Dubai has helped consumers gain more trust in cryptocurrency.
- Young Adults Favoring the UAE’s Crypto Market
The willingness to invest in cryptocurrencies is considerable, both long and short-term. The survey discovered that people aged between 25 to 34 years are more intrigued by cryptocurrencies than those aged 45 or older, accounting for 74% of those interviewed in the UAE. The financial market has been experiencing fast development as a result of shifting customer demand and expectations as well as dispersion throughout the market. The emergence of digitalization in finance has transformed the concept of money, which is leading to the creation of cryptocurrency. Cryptocurrencies were originally seen as limited and temporary, but they are gradually becoming increasingly popular due to the rising interest of young adults. The report’s data indicates that digital asset demand is considerable with continuing attempts of the UAE government to encourage crypto adoption and digital finance.
- Cryptocurrency Trust in the UAE is Among the Highest in the World
In comparison to the UAE, trust percentages are substantially lower in western countries like the United Kingdom, France, and Italy. It is because these countries have not regulated any framework or legislation governing virtual assets. Consumer trust is crucial for this emerging asset class to gain traction. The UAE has already established governmental agencies and a legislative framework to track and support the development of digital assets. In this way, the UAE keeps pace with the rest of the globe for crypto market growth.
- Digital Financial Services in the UAE: Top Concerns of People
Despite the high degree of confidence in virtual assets, there are certain concerns regarding crypto assets. Some concerns are particularly frequent among respondents who want to exchange cryptocurrencies in the coming months. Over the next six to twelve months, people dealing with cryptocurrency will be most concerned about the possibility of being hacked. People are also concerned about not being able to obtain funds without internet access. There are also criminal activities, lack of fraud protection, fear of identity being stolen, and lack of customer support. Other impediments to digital finance include government regulation and a failure to understand the complexity and uncertainty of the crypto world. Based on these top concerns of people, virtual asset service providers must provide a solution to these concerns for building confidence and expanding the cryptocurrency industry.