UAE leads global crypto adoption as nations integrate digital assets into national portfolios

Technology & Innovation

UAE leads global crypto adoption as nations integrate digital assets into national portfolios

The UAE is emerging as a global leader in cryptocurrency adoption, with around 30 per cent of residents using digital assets, as more countries explore the inclusion of crypto in their national portfolios. From Bitcoin bonds to blockchain initiatives, governments are increasingly recognizing the potential of digital currencies to diversify national reserves.

Abdullah Al Dhaheri, CEO of the Blockchain Centre Abu Dhabi, highlighted the UAE’s forward-looking strategy at the Bitcoin MENA conference in Abu Dhabi. “When we invest into projects, we look at those that are stable and can achieve something for the next 10-20 years. We believe in the future, whether it's remittances, tokenised digital assets, Bitcoin on the balance sheet, or as a treasury,” he said.

The UAE has allocated $50 million to long-term blockchain, Bitcoin, and tokenization projects, supporting its goal of becoming a leading digital asset hub. Regulators have collaborated closely with financial institutions and innovators to implement a clear and adaptable framework that encourages sustainable growth in the sector.

Prince Filip of Serbia, Chief Strategy Officer of Bitcoin technology company Jan3, noted that Bitcoin bonds are being explored by several countries as a mechanism to invest in digital assets and mining infrastructure without using taxpayer funds. He also suggested that smaller, liberal countries and monarchies may adopt Bitcoin more rapidly than Western economies, citing the Global South’s experience with fiat instability.

Pakistan has taken bold steps in cryptocurrency adoption, creating a strategic Bitcoin reserve and dedicating 2,000 megawatts of surplus energy to Bitcoin mining, potentially enough to power two million homes. Bilal Bin Saqib, Pakistan’s Minister of State for Crypto and Blockchain, said the move aims to convert excess energy into “digital gold” and support financial independence from traditional monetary policies.

Despite global interest, challenges remain. Prince Filip warned of institutional resistance from bodies like the IMF, citing El Salvador’s experience, where Bitcoin adoption faced pressure to scale back after initial implementation.

The UAE’s proactive approach, combined with its high adoption rate and supportive regulatory environment, positions the country as a regional and global leader in the rapidly evolving digital asset ecosystem.