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Ripple has made significant strides in the Middle East, with the GCC and MENA regions accounting for 20% of its global client base. This deep-rooted presence is a testament to the region’s rapid adoption of blockchain and crypto technologies, especially in cross-border payments. The UAE and Saudi Arabia, two of the world’s largest remittance-sending countries, have embraced Ripple’s solutions, further solidifying its influence.
MENA’s FinTech Revolution
Speaking to Reece Merrick, Ripple’s Managing Director for the Middle East and Africa, he highlighted that the MENA region is at the forefront of a FinTech revolution. Governments across the Middle East have adopted forward-thinking policies and regulatory frameworks that have allowed blockchain technology to flourish. “This region is at the forefront of a FinTech revolution, particularly in cross-border payments,” Merrick noted.
Ripple’s focus on remittances aligns perfectly with the region’s needs. The UAE, which facilitated $38.5 billion in outbound remittances last year, ranks second globally in remittance volume, making it an ideal market for Ripple’s blockchain solutions. With Saudi Arabia and the UAE as key players in this global remittance ecosystem, Ripple’s expansion in the Middle East is strategically positioned for success.
Ripple’s Regulatory Milestone in Dubai
One of Ripple’s most significant achievements in the region is becoming the first blockchain-based payment provider to receive in-principle approval from the Dubai Financial Services Authority (DFSA). This marks a crucial step toward fully regulated cross-border crypto payments in the Middle East.
Merrick emphasized the importance of regulatory frameworks in fostering adoption. “The continued development of regulatory frameworks here will provide the necessary confidence for banks and other regulated entities to fully adopt this technology,” he said. The license from the DFSA enables Ripple to offer its Ripple Payments Direct (RPD) service, addressing common challenges in cross-border payments such as high costs, slow processing times, and lack of transparency.
Ripple’s Stablecoin Vision in the UAE
The UAE’s Central Bank has also been proactive in regulating stablecoins, a move that Ripple welcomes. Merrick noted that Ripple’s USD-backed stablecoin, RLUSD, is set to launch in late 2024 and will play a pivotal role in global payments. The stablecoin aims to bridge the gap between traditional finance and crypto, and Ripple is eager to introduce it in the UAE, pending regulatory approval.
Also Read: Ripple’s XRP Debate Rages On – Price Dips 0.6% As Futures Positions Hit $770M
The Future of Crypto in the Middle East
As Ripple deepens its roots in the MENA region, it continues to monitor the evolving regulatory landscape. Ongoing discussions with Dubai’s Virtual Asset Regulatory Authority (VARA), the Central Bank of UAE (CBUAE), and Abu Dhabi Global Markets (ADGM) indicate that Ripple is keen on further expanding its offerings, including its stablecoin, in the Middle East.
With the region ranked as the seventh-largest crypto market globally, Ripple’s commitment to advancing blockchain solutions in the GCC and MENA regions marks a significant step toward the mainstream adoption of crypto-enabled payments. As regulations evolve and technology advances, Ripple is well-positioned to lead the way in transforming the financial landscape of the Middle East.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Crypto and blockchain enthusiast.
