In a global technology summit, the minister of economy of the United Arab Emirates stated the nation’s plans to double the economy. According to the minister, “Tokenization and cryptocurrency are likely to be the key to the country’s future.” Let us delve deeper into the topic.
When blockchain turned out to be the next innovation, people understood the ins and outs of this new technology. Just when people thought about getting grips with it, tokenization entered. With the new technology on the block, people witnessed a change in the business landscape altogether. While blockchain and cryptocurrency happened to creep into various industries, tokenization however is fairly unheard of to the regular public.
According to the minister of UAE, concerning an adoption standpoint, “The nation possesses numerous ambitious projects underway, thereby incorporate in ongoing researches on financing small and medium enterprises. With an aim to protect investors along with the system, the minister of UAE plans to double the country’s economy with broader financial support without suffocating innovation.” This is where tokenization comes in.
Power Behind Cryptocurrency and Tokenization
As we have witnessed in recent years, startups happen to be economizing their organizations with tokens they provide as a stake in the future of the company. This enables startups to finance their short-term operations, thereby having an intention to develop a functional and successful company. While there remain various successful organizations, there are even numerous unsuccessful examples as well.
The power behind cryptocurrency and tokenization highlights the movement of money, both securely and privately. The trading goes on continuously, 7 days a week and 24 hours a day. The lack of sufficient regulation and harmonized regulation in the UAE are some of the reasons why there needs to be an adoption of tokenization. Regional regulations and jurisdictions need to work together for avoiding cloistered innovation bubbles. It leads to ensuring innovative asset models like fractional ownership, hence benefitting everyone.
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How to Ensure Benefits from Fractionation in the UAE?
Fractional ownership might lead to concerns between blockchain and the real world. The UAE is ultimately eager to lead the world in addressing such issues. Furthermore, the nation is understanding the challenges and experimenting, thereby allowing the UAE for being a site for experimentation.
To Conclude
Without cryptocurrency and tokenization, great projects containing huge potential might fall by the wayside. It encourages potential projects to expand their growth, thereby gaining more exposure in the UAE. Being open to the smallest and largest investors, with the mindset to double the economy.
