Building Better On-Ramps in MENA with Talal Tabbaa
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Key Takeaways
This episode of The Last Trade featured a deep dive into the Middle Eastern and North African Bitcoin and cryptocurrency markets with Talal Tabbaa, CEO of CoinMENA. Key takeaways from the conversation include:
- CoinMENA's Origin and Growth: Talal Tabbaa did not originally found CoinMENA; he joined as a CEO and co-founder. The company was created to address the need for a reliable exchange in the Middle East, prompted by Talal's own frustrations as a customer of existing exchanges.
- Regulation and Banking Relationships: A major focus for CoinMENA has been to obtain regulation by top-tier bodies, such as the Central Bank of Bahrain and Vara in Dubai, to ensure reliable banking channels and customer trust.
- The Role of USDT and Bitcoin in the Middle East: USDT has become incredibly popular in the Middle East, especially in countries experiencing currency devaluation. It's seen as a "digital dollar" and is used for cross-border payments. Bitcoin, while appreciated for wealth preservation in wealthier Middle Eastern nations, is less understood in countries with weaker currencies, where immediate stability is prioritized.
- Bitcoin Mining in the Middle East: The region has significant potential to become a global mining powerhouse, given its energy resources. Governments are beginning to recognize Bitcoin mining as an efficient way to monetize energy.
- Education and Market Development: Education remains a critical component for broader adoption. CoinMENA is working on expanding its user base through education and awareness initiatives, aiming for bitcoin integration into school curriculums and beyond.
- Sharia Compliance and Bitcoin: Bitcoin is seen as Sharia-compliant because it avoids usury and is more aligned with the risk-sharing principles of equity rather than debt. This opens up bitcoin adoption to Islamic finance markets.
- Future Prospects: CoinMENA aims to be the largest crypto business in the Middle East, with a mission to improve lives by providing access to superior forms of money like Bitcoin.
Best Quotes
- "The main takeaway from launching and operating CoinMENA is that USDT is by far the most popular asset for emerging markets." - Talal Tabbaa, highlighting the importance of stablecoins in regions with currency instability.
- "The biggest risk is not to take a risk." - A quote by Sheikh Mohammed, ruler of Dubai, reflecting the city's appetite for innovation and growth, which has been conducive to the flourishing of the bitcoin industry in Dubai.
- "Bitcoin is a Sharia-compliant asset, in my opinion." - Talal Tabbaa, discussing the compatibility of Bitcoin with Islamic finance principles.
- "Without education, it's impossible to acquire and retain proper clients." - Talal Tabbaa, emphasizing the need for comprehensive education to foster understanding and adoption of Bitcoin.
Conclusion
This episode of The Last Trade offered an insightful glimpse into the burgeoning cryptocurrency scene in the Middle East. With a focus on CoinMENA's journey, regulatory frameworks, and the unique dynamics of various Middle Eastern markets, there's a clear message that the region holds significant potential for the growth of Bitcoin and other cryptocurrencies. Whether it's through mining, innovative regulatory approaches, or the pursuit of Sharia-compliant financial products, the Middle East is positioning itself as a key player in the global crypto landscape. As the conversation highlighted, ongoing education and the promotion of understanding are paramount to achieving widespread adoption and leveraging the full potential of these technologies. CoinMENA's mission to onboard millions of users reflects the broader ambition within the region to embrace the digital asset revolution, ultimately aiming to enhance financial accessibility and stability for its populace.
