Bitcoin first, crypto at scale: Inside the UAE’s layered digital asset strategy

The United Arab Emirates (UAE) is implementing a layered digital asset strategy by differentiating roles between its major cities. Abu Dhabi is positioning itself as the institutional hub, concentrating on Bitcoin (BTC) infrastructure, including custody, OTC liquidity, mining, and regulated capital markets, viewing Bitcoin as distinct and time-tested compared to speculative Web3 elements. Conversely, Dubai is fostering a broader crypto economy encompassing payments, stablecoins, Web3 applications, gaming, and tokenization to maximize real-world usage and consumer participation. Industry experts view these approaches as complementary, with Abu Dhabi building 'crypto Wall Street' and Dubai creating the daily utility layer. Regulatory clarity is a key enabler in Dubai, though friction remains at the interface with traditional finance. Stablecoins and payments are emerging as the first areas of durable mass adoption, evidenced by mainstream entities like telecom giant e& testing a dirham-backed stablecoin, despite ongoing operational and banking bottlenecks.

(Source：Cointelegraph)