Saudi Arabia on its way to digitization

Saudi Arabia is known primarily as the country of oil. The state-owned oil-mining company Saudi Aramco brings high profits, which allows for further development. Currently, the government is interested in introducing cryptocurrencies. It is, as it were, a natural step towards further innovation. Already, trading cryptocurrencies there is legal and not controlled in any way. There are also ATMs available in the country to exchange cryptocurrencies for traditional money. And despite this freedom, if any citizen invests badly or is deceived, he will in vain expect help from the government. They assume that citizens are sufficiently informed about the risks associated with this type of investment.

Meanwhile, the government itself has invested a billion dollars in metaverse and blockchain technology.

The most popular stock exchange in Saudi Arabia is Rain. Apart from the fact that it provides comprehensive services related to the cryptocurrency kandle, its advantage is also very low fees for withdrawals.

On the issue of cryptocurrencies, the Saudi Arabian Monetary Authority and the Central Bank of the United Arab Emirates have agreed on cross-border payments and have been using their own cryptocurrency Aber since 2019.

On the other hand, the aforementioned state-owned company Saudi Aramco invested $ 5 million in the Vakt company. This company is engaged in blockchain-based oil trading. Moreover, Aramco plans to mine Bitcoin, which increases the popularity of cryptocurrencies and the willingness to invest in them.

A study by the cryptocurrency exchange KuCoin showed that Saudi Arabia has great potential when it comes to interest in investing in cryptocurrencies. 17% of respondents declared their willingness to invest in this market within the next six months. About 3 million citizens of this country are already investing in and trading cryptocurrencies for the last six months. However, the overwhelming majority, 76%, have little experience in this type of investment and 49% of them started trading in less than six months.

Citizens of Saudi Arabia are also positive about introducing cryptocurrencies into circulation and mention the ease of transferring funds abroad and low costs as advantages. If government investments are successful, it can be expected that Saudi Arabia will be the next country to implement blockchain.