The Need for Bitcoin within the Middle East Community

Image credit: vecteezy.com

In the wake of an economically challenging, politically turbulent, and technologically rapidly changing Middle East, there emerged a need for something that could change this. This innovative solution for such needs took the form of Bitcoin-a decentralized, digital currency with a variety of advantages, from facilitating financial inclusion to improving economic stability, that matched the particular needs of the region.

Perhaps among the single most important factors that have affected many of the Middle Eastern countries is the lack of traditional access to banking. Unbanked or underbanked, it has sometimes been due to bureaucratic barriers, lack of infrastructure, and a general mistrust of financial institutions. Bitcoin allows their participation in the global economy without the use of a bank account. With unprecedented adoption, anyone can store, send, and receive Bitcoin with just a smartphone and internet access, thus enabling economic and social empowerment.

High inflation rates and currency devaluation are very common in many Middle Eastern countries, and as such, really hurt the purchasing power and savings of citizens. Bitcoin is deflationary by nature. Bitcoin is capped at a supply limit of 21 million coins, whereas fiat currency is able to be printed willy-nilly by central banks. During economic unrest, Bitcoin acts as a means for citizens of those countries to store value and preserve wealth over time.

The Middle East hosts a large expatriate population; several million people rely on remittances to support families in their native country. Traditional services offering remittances usually come with hefty fees charged on both ends of the transaction and entail lengthy processing times. Bitcoin significantly reduces these costs and increases speed, making such transfers faster and cheaper. Efficiency in this respect can be quite strong, where family survival depends upon these little incomes coming from abroad.

Bitcoin fosters entrepreneurship and innovation through the creation of new opportunities in capitalization and investment. In a country where access to capital might be restricted, Bitcoin can also become a means for startups to gain funds from other people. The ability to receive Bitcoin will also introduce local businesses to foreign markets, increasing their customer bases and enhancing their chances at growth.

In a region with such high levels of political instability and civil unrest, there can be no match for the demand related to monetary transactions that are both safe and private. Bitcoin offers security that most financial systems cannot often provide. It is very decentralized by nature and therefore less susceptible to government control and censorship. This feature alone is a highly interesting one in those countries whose citizens seek to protect their financial independence.

Corruption, mismanagement, or geopolitics is the reason for most of the Middle Eastern nations to distrust financial institutions. Bitcoin, with an entirely transparent and immutable blockchain, offers the opportunity for independent verification by its users over their transactions. This sheer transparency in the chain further allows the rebuilding of trust in financial systems and encourages more people to be more involved with and utilize financial services.

Bitcoin is much more than just a technological marvel, but it could be a lifeline for the community in the Middle East region. This will be achieved through financial inclusion, acting as an inflation hedge, enabling efficient remittances, catalyzing entrepreneurship, ensuring security and privacy, and instilling confidence in financial systems. In such a context, Bitcoin has positive impacts on the economic growth and stability of this region. This is because, with the world drifting towards digital solutions, the Middle East has the opportunity to implement Bitcoin into its economic policies as a building block for a better future that's more resilient.