With the UAE government’s constant efforts to promote digital finance and encourage crypto trading, data from YouGov’s “The Future of Financial Services Report” shows interest in this digital asset is high and two thirds of UAE residents (67%) say they are interested in investing into cryptocurrencies within the next five years.
Of these, young respondents between 25-34 years (74%) are most likely to say they are interested in cryptocurrencies as compared to older adults aged.
“The Future of Financial Services Report” uses deep-dive custom research and data from YouGov’s profiles to explore the current global financial landscape, and identify the global adoption of, and trust in, new and emerging financial services across 18 international markets.
Data from the whitepaper suggests that interest to invest in cryptocurrency is high both in long as well as short term. One in five consumers in the UAE (21%) said they intend to trade in cryptocurrencies in the next 12 months, third highest proportion across the surveyed markets, after Indonesia (25%) and India (22%).
When it comes to trust in this digital asset, our research shows UAE is one of the top markets globally where consumers say they trust cryptocurrencies (40%). The UAE government’s recent enactment of the country’s first law governing virtual assets may have played a role in installing deeper trust among people in this asset class.
Compared to the UAE, numbers are much smaller in western markets like the UK (6%), France (9%) and Italy (11%), where laws governing virtual assets are not defined.
Although trust in cryptocurrency in high there are concerns about digital finances, some more prevalent among respondents who intend to trade in cryptocurrencies.
While risk from hackers is the biggest concern about dealing in digital financial services, it is more concerning to those who intend to invest in crypto in the next 12 months as compared to all respondents (51% vs 43%). The same is true for worries about not being able to access money without internet connection (50% vs 37%), identity theft (45% vs 37%) and lesser fraud protection (39% vs 32%), all of which are more pronounced among those interested in crypto trading.
Government regulation and lack of knowledge are some other barriers surrounding digital finances.
These concerns highlight the need for cryptocurrency providers to address these challenges in order to strengthen trust and expand the market.
Emma McInnes, Global Sector Head of Financial Services at YouGov, said, “The financial services industry has been undergoing rapid transformation driven by both changing consumer expectations and wider industry fragmentation. In the digital age of finance, the concept of money is continuously evolving. This has led to the creation of new financial assets like cryptocurrencies, which were once considered niche and short-lived, but now are becoming more mainstream. Although the popularity of digital currencies is growing worldwide, there are serious concerns about security and fraud. Building trust among consumers is pivotal for this emerging asset class to accelerate adoption. Countries like the UAE have already created governing bodies to measure and promote the growth of virtual assets, and by doing so, it’s keeping itself ahead of most of the world in terms of developing the crypto market.”