Over the ensuing decade, the cryptocurrency industry has evolved from narratives such as “Wild West,” “unregulated,” and “experimental” to an important aspect of the financial infrastructure. It has managed to convert skeptics into advocates and proponents. Today, crypto’s potential is enormous, and Mubadala Investment Company’s CEO and Managing Director Khaldoon Al Mubarak understand that very well.
In an interview with CNBC, Khaldoon doubled down on the immense growth of the cryptocurrency industry from a market value of just $200 billion two years ago to almost $2.5 trillion today. The exec said,
“I think it is (crypto) is real. This is a business that had $200 billion worth of value two years ago, and is $2.50 trillion in value today and growing. So while many people are skeptics, I do not fall in that category.”
While he still thinks that there are still a lot of individuals who are still skeptical about it, the exec does not find himself in that category. He stated,
“Well, I think many people are skeptics. I do not fall into the category. I see it as real.”
Regulatory uncertainty is a major factor preventing the mass adoption of the sector. On that note, Khaldoon emphasized that there is a long way to go for regulations to reach a “final form.”
At the same time, he also noted that regulatory clarity will help transition this asset class into “something new.” Without divulging more details, the Chief Executive revealed that the fund is investing across various verticals such as blockchain tech, energy, and others.
With assets over $243 billion, Mubadala Investment Capital is one of the largest wealth funds not just in the UAE but also in the world.
UAE has positioned itself as a massive hub for innovation in the fintech sector. Thanks to the innovation-first policies framed by regulators in the region, several key market players have realized the rapidly evolving world of cryptocurrencies and blockchain technology and the need to embrace it.
It is due to this progressive approach that the country has managed to cement itself as to be one of the friendliest cryptocurrency jurisdictions across the world.
This has fostered several blockchain startups to establish their foothold in Abu Dhabi. As far as cryptocurrency regulation is concerned, the Dubai Financial Services Authority (DFSA) recently set up a regulatory framework for investment tokens. The idea is to boost the digital financial and technological environment while also addressing the growing demands and requirements.
Featured Image Courtesy of AlBawaba