Survey Finds Majority of Saudis Aware, but Only a Few Invest in Crypto
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YouGov’s latest survey released on Monday indicates that digital banking has become increasingly popular in Saudi Arabia. According to the survey, nine out of ten respondents (91%) say that they prefer online banking. Furthermore, 86% of respondents have even shown intention to switch to digital-only banking methods in the future.
The data from YouGov’s latest survey indicates that in Saudi Arabia, crypto coins have generated a significant amount of awareness. More than three-quarters of residents (77%) claim to be aware of the new asset class.
Although awareness about cryptocurrency is high, only 18% currently trade in such assets. Young adults between 25-34 years is the main group dealing in cryptocurrencies
Cryptocurrencies
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the networks which are used to authenticate blockchain technology. Cryptocurrencies can be thought of as systems that accept online payments which are denoted as “tokens.” Tokens are represented as internal ledger entries in blockchain technology while the term crypto is used to depict cryptographic methods and encryption algorithms such as public-private key pairs, various hashing functions, and an elliptical curve. Every cryptocurrency transaction that occurs is logged in a web-based ledger with blockchain technology.These then must be approved by a disparate network of individual nodes (computers that maintain a copy of the ledger). For every new block generated, the block must first be authenticated and confirmed ‘approved’ by each node, which makes forging the transactional history of cryptocurrencies nearly impossible. The World’s First CryptoBitcoin became the first blockchain-based cryptocurrency and to this day is still the most demanded cryptocurrency and the most valued. Bitcoin still contributes the majority of the overall cryptocurrency market volume, though several other cryptos have grown in popularity in recent years.Indeed, out of the wake of Bitcoin, iterations of Bitcoin became prevalent which resulted in a multitude of newly created or cloned cryptocurrencies. Contending cryptocurrencies that emerged after Bitcoin’s success is referred to as ‘altcoins’ and they refer to cryptocurrencies such as Bitcoin, Peercoin, Namecoin, Ethereum, Ripple, Stellar, and Dash. Cryptocurrencies promise a wide range of technological innovations that have yet to be structured into being. Simplified payments between two parties without the need for a middle man is one aspect while leveraging blockchain technology to minimize transaction and processing fees for banks is another. Of course, cryptocurrencies have their disadvantages too. This includes issues of tax evasion, money laundering, and other illicit online activities where anonymity is a dire ingredient in solicitous and fraudulent activities.
Read this Term. The survey shows that 25% of young adults are investing in such virtual assets. However, 37% of older adults aged 45+ appears hesitant and don’t intend to deal with such an asset class.
Additionally, the poll shows that the popularity of crypto is among high-income households (earning SAR 30,000+). High-income earners are more likely than others to invest in crypto assets.
Despite the small number of active crypto investors in the country, the future of such digital assets looks promising. More than a third (34%) of the surveyed respondents who are aware of crypto said they intend to invest in them. The idea of investing in the new asset class appears more appealing to men than women (36% vs 30%).
As per the survey, the key motivation for most Saudi Arabian residents, who either invest or intend to invest in crypto, is the easy accessibility of such assets for trading (49%). High returns compared to other investments are the second motivator among these residents (43%). The study shows that 45+ adults have a higher interest in investing in crypto to get higher returns.
Many residents invest in crypto to diversify their portfolio (38%) because they regard it as a secure transparent long-term investment option.
Although people are motivated to invest in cryptos, many others are discouraged from investing in such virtual assets. Almost 2 in 5 Saudi Arabia residents (37%) consider the volatility and instability of the crypto market as the major reason that discourages them from investing. Religious beliefs (15%) and cybersecurity threats (13%) are among other reasons that deter them from investing in such assets.
Ambitions to Become a Fintech Hub
Saudi citizens are ranked third in the Arab world in terms of individuals owning cryptos. There is a total of 453,000 Saudi residents who own this type of digital asset. Egypt ranked first in the Arab world with its population investing in cryptos standing at 1.8 million. Morocco comes in second with 878,000 residents investing in cryptocurrencies.
The fintech sector in Saudi Arabia is booming. In the last few years, Saudi Arabia has expanded its efforts to attract crypto firms. The Saudi Central Bank and Central Bank of the United Arab Emirates have been collaborating together to learn how they can adopt blockchain and digital payments.
Saudi Arabia intends to become an international financial center. Authorities are positioning cryptocurrency to be part of that. Saudi Arabia is positioning itself as a safe harbour for crypto companies. The official stamp of approval is beginning to show results. As a result, big pools of capital are becoming interested in crypto. The nation has witnessed a significant increase in fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices.
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices.
Read this Term-related activities in the last 12 months.
In Saudi Arabia, the emphasis on cryptocurrency is part of the nation’s Saudi Vision 2030, which aims to diversify the economy and make the nation a hub of innovation.
YouGov’s latest survey released on Monday indicates that digital banking has become increasingly popular in Saudi Arabia. According to the survey, nine out of ten respondents (91%) say that they prefer online banking. Furthermore, 86% of respondents have even shown intention to switch to digital-only banking methods in the future.
The data from YouGov’s latest survey indicates that in Saudi Arabia, crypto coins have generated a significant amount of awareness. More than three-quarters of residents (77%) claim to be aware of the new asset class.
Additionally, the poll shows that the popularity of crypto is among high-income households (earning SAR 30,000+). High-income earners are more likely than others to invest in crypto assets.
Despite the small number of active crypto investors in the country, the future of such digital assets looks promising. More than a third (34%) of the surveyed respondents who are aware of crypto said they intend to invest in them. The idea of investing in the new asset class appears more appealing to men than women (36% vs 30%).
As per the survey, the key motivation for most Saudi Arabian residents, who either invest or intend to invest in crypto, is the easy accessibility of such assets for trading (49%). High returns compared to other investments are the second motivator among these residents (43%). The study shows that 45+ adults have a higher interest in investing in crypto to get higher returns.
Many residents invest in crypto to diversify their portfolio (38%) because they regard it as a secure transparent long-term investment option.
Although people are motivated to invest in cryptos, many others are discouraged from investing in such virtual assets. Almost 2 in 5 Saudi Arabia residents (37%) consider the volatility and instability of the crypto market as the major reason that discourages them from investing. Religious beliefs (15%) and cybersecurity threats (13%) are among other reasons that deter them from investing in such assets.
Ambitions to Become a Fintech Hub
Saudi citizens are ranked third in the Arab world in terms of individuals owning cryptos. There is a total of 453,000 Saudi residents who own this type of digital asset. Egypt ranked first in the Arab world with its population investing in cryptos standing at 1.8 million. Morocco comes in second with 878,000 residents investing in cryptocurrencies.
The fintech sector in Saudi Arabia is booming. In the last few years, Saudi Arabia has expanded its efforts to attract crypto firms. The Saudi Central Bank and Central Bank of the United Arab Emirates have been collaborating together to learn how they can adopt blockchain and digital payments.
Saudi Arabia intends to become an international financial center. Authorities are positioning cryptocurrency to be part of that. Saudi Arabia is positioning itself as a safe harbour for crypto companies. The official stamp of approval is beginning to show results. As a result, big pools of capital are becoming interested in crypto. The nation has witnessed a significant increase in fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices.
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to supply a technological service that not only simplifies but also aids consumers, business operators, and networks.This is done by optimizing business processes and financial operations through the implementation of specialized software, algorithms, and automated computing processes. Transitioning from the roots of the financial sector, fintech providers can be found through a multitude of industries such as retail banking, education, cryptocurrencies, insurance, nonprofit, and more. While fintechs cover a vast array of business sectors, it can be broken down into four classifications which are as followed: Business-to-business for banks, Business-to-business for banking business clients, business-to-consumers for small businesses, and consumers. More recently, fintechs presence has become increasingly apparent within the trading sector, primarily for cryptocurrencies and blockchain technology.The creation and use of Bitcoin can also be contributed to innovations brought upon by fintechs while smart contracts through blockchain technology have simplified and automated contracts between buyers and sellers. As a whole, fintechs applications are growing more diverse with a consumer-centric focus while its applications continue to innovate the trading and cryptocurrency sectors through automated technologies and business practices.
Read this Term-related activities in the last 12 months.
In Saudi Arabia, the emphasis on cryptocurrency is part of the nation’s Saudi Vision 2030, which aims to diversify the economy and make the nation a hub of innovation.
Cryptocurrency
