UAE sees exceptional growth in digital decentralization - Beacon

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Monday, April 15, 2024

UAE sees exceptional growth in digital decentralization

UAE’s Digital Economy Strategy

DMCC – the world’s flagship free zone and Government of Dubai Authority on commodities trade and enterprise – today released a special edition of its Future of Trade thought leadership report focused on Web3, examining the key drivers of growth, innovation and digital decentralisation in a number of technology trends.

The report, titled “Digital Decentralisation: Crypto, DeFi and the Metaverse,” explores the market outlook and opportunities for Web3 trends rooted in a blockchain-based digital infrastructure, including cryptocurrency, decentralised finance (DeFi), and the metaverse. T

he report assesses recent challenges in these sectors and forecasts a period of maturity, with recommendations for industry and regulators to nurture and fast-track industry growth in the coming years.

The market size for the metaverse is set to rise to USD 3.4 trillion by 2027 supported by road-tested use cases and the rapid advancements of Artificial Intelligence. The global DeFi market is expected to grow from USD 13.6 billion in 2022 to USD 600 billion by 2032, driven by the demand for fast and feeless financial services.

Meanwhile, the crypto market appears set to stabilise after a period of turbulence, with 2023’s Bitcoin revival casting a spotlight on renewed appetite among industry and institutions for durable and value-added services.

However, much depends on the path regulators take and their ability to balance innovation, consumer protection, and fraud risk. The report reviews government approaches across key regions, namely MENA, Asia, Europe and the United States. 

It finds that innovation hubs are emerging in countries like the UAE, which secured USD 25 billion of crypto transactions in 2022, and is pushing to attract further investment through accommodative regulatory stances.

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