Middle East Investment Bank Says Bitcoin Can Be Used As E-Commerce
Kuwait-based investment banking and asset management company known as Markaz, Kuwait Finance Center, has published a new report on Bitcoin, which it describes as "a disruptive technology that can help the region increase its e-commerce usage".
In the 20-page report titled “A destructive Technology: Has The Currency be Rediscovered with Bitcoins? Bitcoin is mentioned in a large area while it remarks the opportunities offered to investors by the GCC and its member countries, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Markaz describes the strengths and weaknesses of Bitcoin, the different tasks of global regulators, and the details of Mt. Gox hack. All of this is encouraging for both the local Bitcoin operators in the Middle East and the wider digital money industry. Despite the risks, the report concludes that Middle East investors should not ignore the benefits that Bitcoin can bring to the region. Readers about the issue:
“If used correctly, this technology can enable e-commerce to grow in scale. Micropayment and payment technology without cash will make it easier for people to carry only their smartphones and pay through them,” he said.
Markaz also pointed out that Bitcoin could be very well suited to the needs of the Middle East if we look at the fact that in the Middle East 50% of young people use smartphones in terms of demography:
“Although Bitcoin is initially difficult to understand, GCC countries have the majority of young people in their 20s who are educating them. The social media forums show that there are people of this age actively involved in Bitcoin.
In the report, there is the Bitcoin’s latest appearance at Dubai’s ArabNet Digital Summit 2014. The local entrepreneurs of Yellow and Umbrellab from the Bitcoin companies introduced new members of the technology community to the region.
Investment opportunities are limited
Investors in North America and Europe are now benefiting from an increasing number of Bitcoin sectors to invest. Markaz, however, has indicated that GCC investors will have fewer local options and will have to take more risk to gain or move towards international services.
While Markaz concludes that angel investment is the best option for GCC investors, he notes that those interested in this sector should also approach carefully:
“However, investors should exercise due diligence in their own initiatives before making risky investments. Bitcoin is still in an experimental phase, and has up to 80% possibility that Bitcoin value is likely to be zero since it is basically based on people’s acceptance. ”
Due to the lack of improvement in MENA initiatives, sudden obstacles are presented. While the report says, “There is no GCC-based Bitcoin trading,” it also has a section on how to open a Bitcoin trading that covers the bases of digital exchange trading.
For now, the report directs investors to international investments such as Bitcoin Investment Trust. Bitcoin Investment Trust, led by CEO Barry Silbert, praised this investment tool by saying, “It is subjected to Bitcoin’s price movements, sales and purchases, storage and reservation without having direct access to Bitcoin.”
Bitcoin may increase oil trade
One of the interesting findings on the report is the result that Bitcoin can be used to help save money for oil exporters. The sector currently covers 90% of GCC exports and 75% of government revenue, but according to Markaz, it also has to deal with the cost of getting payments all over the world.
In particular, it reports that Bitcoin can be used to reduce the payment period of international payments and that it takes between one and three days to be processed now.
The report envisions a wide range of potential uses for Bitcoin technology to improve the region’s oil trade:
“Making the payment system compatible with Bitcoin systems will save money in terms of cost, time and paperwork. Alternatively, the same payment method can be used for fund transfers between both GCC regions and the entire Middle East.”
Need to take a careful step
Markaz concludes Bitcoin has “a long way to go” to catch up with Visa and MasterCard’s transaction volumes, reasoning Coinmetrics data, which makes Bitcoin’s daily trading volume $89 million.
In the report, the potential obstacles are said to have come from conservative governments, which prevent the eventual realization of Bitcoin as a currency and a payment system.
As a result, Markaz warns investors that Bitcoin offers a high-risk investment opportunity:
“Bitcoin is based on the acceptance of people. If acceptance does not get widespread, Bitcoin can cause the internet to be forgotten,” he said.