After announcements from the regulatory agencies in Dubai and Abu Dhabi that control virtual assets and cryptocurrencies, cryptocurrency players worldwide have entered the thriving Middle East cryptocurrency industry.
As per ChainAnalysis, this has made the Middle East one of the fastest-growing cryptocurrency marketplaces, accounting for 7% of worldwide trade volumes. In addition, according to a recent poll, 33 percent of UAE citizens have invested in cryptocurrency.
Furthermore, according to YouGov statistics, 67 percent of UAE consumers are interested in investing in cryptocurrency in the next five years.
Nevertheless, the ecosystem will have to overcome some obstacles before it can capitalize on the region’s customer enthusiasm.
The difficulty in on-ramping into the crypto ecosystem is the most daunting challenge that must be overcome. Luckily, Open Banking may help to eliminate friction and, as a result, enhance crypto acceptance.
First, by merging open banking protocols with industry-standard APIs, Open Banking will provide a frictionless experience for crypto investors. With this pairing, customers would only have to give authentication once along their crypto journey.
Second, Open Banking eliminates the necessity for conventional payment methods, including manual bank transfers and credit card transactions. This method is usually connected with delay and extra costs for the user.
Following that, a client will be able to simply speed up the activation process while still complying with regulatory standards by utilizing Open Banking APIs.
Finally, cryptocurrency acceptance will make payments more convenient. The underlying blockchain technology will simplify verifying consumer accounts and cross-validate them.