UAE: Is it possible that salaries could soon be paid in cryptocurrency?

Key Takeaways:

  • This week, Dubai will host the Investopia Summit, which will cover a wide range of themes.
  • The metaverse will be discussed, and officials are also looking into cryptocurrency salaries.
  • According to analysts, the number of cryptocurrency enterprises in Dubai will triple by 2022.

The Event

This week, Dubai will host the Investopia Summit, which will begin on Monday.

Several themes connected to cryptocurrency and financial trends will be discussed by government leaders.

Market insiders predict that as virtual assets gain currency in the UAE and around the world, additional companies will pay salaries in cryptocurrencies, and the industry will become less volatile as a result of improved laws and legal framework.

Some countries have already adopted digital currencies, and a few technology companies have been employing their personnel in cryptos.

Policymakers, investors, and entrepreneurs will debate a wide range of themes at the summit.

With Dubai establishing a legal framework and an authority to govern virtual assets, industry executives believe it’s likely that employees will be paid in digital currencies, and residents will be able to pay utility bills and purchase goods using this new kind of currency. Officials have seen that salaries in other nations are paid in cryptocurrency. In the future, the UAE may do the same by paying salaries in crypto, particularly stablecoins. However, a lack of understanding and volatility continue to be a source of concern.

“The Investopia Summit will also shed light on the world’s rapid advances in the cryptocurrency industry, which has spurred banks to participate in the next generation of financial technology,” stated UAE Minister of Economy Abdulla Bin Touq Al Marri. “Investing in space, together with space tourism and the future of technology related to it, will be among the primary subjects on the summit’s agenda.”

ADGM was the first jurisdiction in the world to establish a complete and tailored legislative framework for the regulation of spot virtual asset activities, namely those carried out by international trading facilities, brokers, custodians, asset managers, and other intermediaries. Dubai has passed legislation governing virtual assets and established the Dubai Virtual Asset Regulatory Authority (Vara), which has recently granted licences to the exchanges FTX and Binance.

Background

Dubai’s ruler, His Highness Sheikh Mohammad, adopted a virtual asset law earlier this month and announced the formation of the Dubai Virtual Assets Regulatory Authority to oversee the sector. Dubai is pushing itself as the world’s crypto capital. In the Chainalysis Global Crypto Adoption Index, the UAE is ranked 100th, and in the Global DeFi Adoption Index, it is ranked 51st.

Emirates Draw and YottaChain International Holding Limited (DIFC), which specialises in the decentralisation of data storage solutions, have inked a provision that allows crypto holders to participate in the Emirates Draw, reflecting the growing acceptance of digital currencies in the UAE. Payments will be made in USDT, a well-known and reliable token, through a decentralised application in the initial phase (dApp).

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Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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