In a panel at the World Economic Forum’s Global Technology Governance Summit today, UAE Economy Minister Abdulla Bin Touq Al Marri said that cryptocurrency and asset tokenization will be central to the country’s plans to double its economy – currently estimated at 34º. largest in the world – in 10 years.
Al Marri participated in the panel entitled “The arrival of the symbolic economy, from art to real estate”, by the artist Harry Yeff and the WEF executive Sheila Warren. While much of the conversation focused on the current non-fungible toke craze, Al Marri’s comments focused mainly on the next tokenization use cases and their regulation.
According to Al Marri, the country has ambitions to increase its gross domestic product by 7% per year, which would put it on the path to doubling the size of its economy by 2030. Tokenization will be a key part of this effort, as “compliments tokenization information-based economies. “
Perhaps the most exciting from the adoption point of view, the minister said that the country has several ambitious projects underway, including a study being conducted with the WEF on financing small and medium-sized businesses with a government-administered token platform, possibly as part of a “regional token exchange” that is “on our agenda,” said Al Marri.
When asked how the government – which by nature is deeply rooted in a pre-symbolic economy – will interact with these new models and the need to regulate them, Al Marri said the goal is to protect investors as well as the financial system. broader, without stifling innovation.
“We are a government – we are good at regulation,” he joked.
He highlighted two problem points in particular: the lack of “harmonized regulation” and the lack of sufficient regulation. He noted that jurisdiction and regional regulations need to work together to avoid cloaked bubbles of innovation and to ensure that new asset models, such as fractional ownership, benefit everyone.
“How can we take fractionation to a level where everyone can benefit?” he asked.
He also noted that fractional ownership can lead to real-world problems that you find on the blockchain: if an apartment has fractional ownership, who pays for maintenance fees? If there is a fractional painting, what happens when the painting is stolen?
Ultimately, the country is eager to lead the world in addressing these issues.
“We understand the challenges as such, but we are experimenting and allowing the UAE to be a place for experimentation.”
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