The blockchain industry had acquired a significant boost before the pandemic hit the global market. However, the blockchain market has been gaining traction recently as it adopted digital technologies introduced during the pandemic era. The Internet of Things (IoT) and the cloud-based system gave it a safe and secure environment to operate. It also enhanced privacy, which attracted more buyers and investors, constantly expanding the blockchain sphere.
As a result, several government agencies are also looking at it as a potential way to grow their economy and have a global presence. Middle Eastern countries are the latest addition to the governments adopting blockchain technology. Recently, the central bank of Saudi Arabia announced plans to expand its digital currency, Aber. It plans to use digital currency for cross-border transactions and has already begun utilizing it for transactions between the UAE and Saudi Arabia.
Using blockchain technology has a considerable advantage in the money transfer and payment processing systems. It also lets businesses analyze and view items in the supply chains at a reduced cost and helps them accurately get solutions instantaneously.
Governments see blockchain technology as a potential strategy to keep a check on fraudulent transactions and authenticate digital identification. As there are little to no loopholes in the blockchain, it is an effective way to keep track of all transactions with the utmost security. A blockchain development company can implement several security protocols to ensure the management of the system.
Another reason is that blockchain can be used in all spheres and can help boost a country’s economy. It can also replace paper-based transactions, keep patient records, and implement asset transfers. This will, in turn, reduce the costs involved in the current system.
Since using blockchains can positively transform the economy, Middle Eastern governments and businesses are looking for ways to implement blockchains in every sphere of the market. As a public ledger, it has higher security, efficiency, and transparency, making it a popular choice.
Due to the huge potential of blockchains, the Middle Eastern governments and companies based in the region are looking into cryptocurrency technology. Dubai also revealed its plans for the world’s first blockchain court, confirming the interest of the middle countries in the blockchain world.
However, the only obstacle these countries are facing is a lack of knowledge and relevant skills in the field of digital ledgers. So, governments and corporates are in the initial stages of getting a hold of the system and understanding the procedures. Since the Middle Eastern countries have a large reserve of energy resources, it won’t take them long to reach the implementation and launch phases of the blockchain technology.
Blockchain development requires an immense amount of energy. Electricity bills are one of the biggest reasons why companies think twice before going for mining. With a large energy reserve and an investment in solar and renewable energy, Middle Eastern countries can easily design and implement cryptocurrencies.
As a result, these countries will benefit significantly from the blockchain market and will likely gain an advantage in the global market. Since they dominate the power resources in the countries, experts predict that the governments of Middle Eastern countries will play a crucial role in the implantation of the blockchain.
According to reports, the expected value of the blockchain market by the end of the forecast period in the Asia Pacific is $10.11 billion. The expected compound annual growth rate is currently 30.2%. As more and more companies in the e-commerce, real estate, and retail sectors are implementing blockchains, their demand is constantly increasing.
In addition, Asia Pacific has the largest market for blockchain technology, and it will expand exponentially in the future because of its reliable infrastructure and protocols. As per the predictions, the sub-segments of the Banking, Financial Services, and Insurance (BFSI) sector will have the biggest shares in the blockchain market.
Flexibility in the laws regarding blockchain in the Asia Pacific is also giving an encouraging hand to blockchain activities. Countries like India, South Korea, Singapore, Australia, Japan, and China have the highest CAGR as per the report. With blockchain consulting, these countries can enhance the security and efficiency of cryptocurrencies and public ledgers.
Several driving factors are responsible for the tremendous growth of the blockchain market in the Asia Pacific region. Some of them include initial coin offerings, lower cost of ownership, time efficiency, cost-effectiveness, fast processing, higher transparency, and an increasing market for cryptocurrencies.
Seeing the tremendous benefits of blockchains in several spheres, Asia and the Middle East are making new developments to dominate the industry. They are looking for strategies and ways to create cryptocurrencies and digital ledgers to ease the work and reap the benefits of blockchain. Thus, setting up a blockchain consulting company in these countries will become easier due to the increasing needs and focus on digitalization.