‘Open banking’ ways can speed up UAE consumers’ crypto transactions

‘Open banking’ ways can speed up UAE consumers’ crypto transactions

The Middle East is one of the fastest growing cryptocurrency markets, making up 7 per cent of global trading volumes according to ChainAnalysis. It is estimated that the UAE transacts approximately $25 billion each year. Following the announcement from Dubai and Abu Dhabi’s regulatory authorities governing virtual assets and cryptocurrencies, global players subsequently launched in the market. A survey found that 33 per cent of UAE residents say they have invested in cryptocurrencies, while YouGov data found that 67 per cent of UAE consumers are interested in investing in crypto within five years. However, there are several challenges that the ecosystem will need to overcome to build upon the interest shown by consumers. When consumers want to start on their crypto journey, the experience can be complicated and clunky. Most exchanges still operate on traditional bank payment rails, like accepting cards or manual bank transfers. Funds often take days to settle, there are higher fees associated in these transactions, and lengthy processing times can affect currency price changes. More importantly, they are prone to fraud and error. This friction for the consumer experience leads to decreased trust and sense of security in crypto. Here are four ways ‘Open Banking’ can