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Bitcoin: will BTC soon be legal tender in the United Arab Emirates?


© Reuters.

Investing.com – The cryptocurrency market seems to have taken the first shock of the monetary policy decision for the moment. The rose 1.21 percent in the past 24 hours to $19,176, where it was before the US interest rate hike.

As blockchain analysis firm Chainanalysis has found, cryptocurrency adoption continues to grow. After El Salvador was the first country in the world to accept the as a legal form of payment last year, other countries in Latin America have also considered doing the same.

As Russia plans to use cryptocurrencies for its commodity exports to circumvent sanctions, the UAE seems to be increasingly interested in this alternative payment system.

The Seed Group, a subsidiary of the Private Office of Sheikh Saeed bin Ahmed Al Maktoum (UAE), has announced a partnership with CoinCorner. The goal is to lay the first stone to establish bitcoin as a legal means of payment in this region. The support of the royal house should contribute largely to the success of this project.

The United Arab Emirates is currently among the four countries where the introduction of bitcoin as a legal form of payment is most likely. The volume of transactions increased by 1500 percent between 2020 and 2021 to reach $26 billion. Hisham Al Gurg, CEO of Seed Group, said:

“Besides individuals, many companies are ready to use bitcoin and other digital currencies as legal means of payment for their future transactions. The UAE wants to provide fintech companies with an environment conducive to growth by creating an ecosystem for currencies Businesses that accept cryptocurrencies have great potential in the digital economy of the Emirates.”

Bitcoin Reaches Technical Price Levels

Bitcoin hit a fresh low at $18,191 yesterday, while the positive divergence (green lines) was confirmed by the RSI. A rally followed which is currently testing the 78.6% Fibo retracement at $19,251.

Should the bulls manage to breach this resistance, a durable break would consolidate gains towards the 61.8% Fibo retracement of $20,523.

Bitcoin

On the other hand, if the bears stay in control and successfully defend the 78.6 percent Fibo retracement, losses towards the $17,630 cycle low are not out of the question.

By Marco Oehrl



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