Despite the growing popularity of cryptocurrencies in the Arab world, trading in major currencies such as Bitcoin and Ethereum remains surprisingly low. Reports such as the 2023 Chainalysis report indicate that countries such as the UAE and Saudi Arabia are among the most active in this field. The UAE accounts for 25% of the digital trading volume in the Middle East, while Saudi Arabiaâs share is about 18%. However, popular cryptocurrencies such as Bitcoin and Ethereum represent a small portion of this trading.
In the UAE, Bitcoin accounts for around 12% of digital currency trading volume, while Ethereum is between 8% and 10%. It is noted that many investors prefer altcoins that are linked to local projects or new technologies such as decentralized finance (DeFi) and smart contracts. In countries such as Egypt and Morocco, where the use of digital currencies is rapidly increasing, people prefer stablecoins such as USDT due to their stable value and their peg to the dollar. Consequently, Bitcoin and Ethereum represent less than 5% of total trading, perhaps due to concerns about their high price volatility.
This disparity points to the need to increase awareness about major cryptocurrencies, as well as develop a more flexible regulatory environment that contributes to enhancing trust and safe trading. With the right efforts, the Arab world may witness an increase in the use of Bitcoin and Ethereum in the future.
