Commercial Bank International PJSC (CBI) and Fuze, a digital asset infrastructure provider, have inked a Memorandum of Understanding to investigate and advance digital asset solutions within the UAE’s thorough regulatory frameworks.
As per a statement shared on Zawya, this collaboration marks a crucial stride in tackling the escalating demand for regulated cryptocurrency services.
Giovanni Everduin, the Chief Strategy and Innovation Officer of Commercial Bank International, remarked: “Pooling the knowledge, expertise, and resources of CBI and Fuze will aid us in exploring a variety of innovative new digital assets use cases for business and personal finance.”
“This agreement will bring our customers closer to the many opportunities of digital assets within a safe and regulated environment, in line with the UAE’s world-class virtual assets regulations.”
The cooperation between CBI and Fuze seeks to bolster the UAE’s burgeoning digital assets ecosystem.
By harnessing technologies and regulatory frameworks, both entities aim to promote financial inclusivity and propel the digital transformation of the country’s financial sector.
Dubai’s crypto sector is witnessing exponential growth.
Despite challenges such as market volatility and trust issues, a survey from KuCoin released last year underscored the thriving crypto landscape in the UAE.
According to the report, 59% of crypto users in the region view cryptocurrency as a dependable long-term investment, showcasing its potential as a store of value.
Furthermore, 35% perceive crypto as a diversification tool, while 11% have embraced it as a hedge against inflation.
The survey disclosed that crypto serves as a convenient asset storage method for 29% of respondents, challenging traditional banking systems.
Moreover, 22% utilise crypto for daily transactions, while 12% rely on it for cross-border remittances due to its practicality and versatility.
Security emerged as a top priority for crypto users in the UAE, with 63% highlighting it in their choice of exchanges.
Brand reputation and customer support also play pivotal roles, underscoring the growing discernment within the community concerning safeguarding digital assets.
Bitcoin remains the preferred choice for 72% of crypto investors in the UAE, followed by Ethereum at 52%.
The region’s advantageous position, including access to funding, robust infrastructure, favourable regulations, and global networks, bolsters its status as a growing hub for the development of the crypto industry.