The best balance between traditional assets – such as fiat currencies and gold, and digital currencies like cryptocurrencies – is one that reflects both individual financial goals and an appetite for risk. A well-diversified strategy, incorporating conventional currencies, stocks, cryptocurrencies, and gold, has been the key to reducing risk while maximising returns in an increasingly interconnected financial world for many years.
As the influence of digital assets expands, we at MultiBank Group have observed a significant trend: investors are now allocating 5 per cent to 10 per cent of their portfolios to cryptocurrencies. This trend is particularly compelling given the strengthening regulatory framework in the UAE, led by the Virtual Assets Regulatory Authority (VARA). Under this regulatory clarity, the opportunity for further portfolio diversification grows, offering robust potential for both stability and returns.
Cryptocurrencies present several clear advantages over traditional foreign exchange. These include the ability to execute 24/7 instant transactions, significantly lower transfer fees, and instant cross-border exchanges. However, while digital currencies are gaining wider acceptance, they should not be viewed as a direct equivalent to physical money just yet. When investing in cryptocurrencies, it is essential to buy and store these assets through regulated exchanges. MultiBank Group takes pride in maintaining the highest standards of compliance, providing access to a carefully curated selection of stable, secure blockchain-based assets that ensure a transparent and safe trading environment.
This shift in the financial landscape mirrors the UAE’s broader strategic vision to establish itself as a global hub for digital currencies. We foresee an increasing number of UAE institutions across various sectors deploying digital money into mainstream operations, following the lead of pioneers like Du. As this integration accelerates, it will catalyse the development of advanced blockchain infrastructures, regulated exchanges, and potentially, a Dirham-backed stablecoin. Together, these innovations will solidify the UAE’s leadership in the digital finance landscape.
The crypto landscape is revolutionising opportunities for individuals, traders, investors, governments, and corporations across various fields — not just in finance and trading, but also in sectors such as art, culture, healthcare, sports, and beyond. The limitless potential of crypto technology empowers users to save for themselves and future generations, transact securely and instantly, and unlock new avenues for capital expansion and growth. As such, the crypto space is poised to play a pivotal role in redefining the future of money and economic interaction.
Like gold, crypto can serve as a hedge against geopolitical instability and currency fluctuations. However, the inherent volatility of some digital assets means that investors must approach them with caution, conducting thorough research and investing through reputable, regulated institutions. Platforms like MultiBank Group’s MEX Exchange ECN Platform – one of the first inter-bank trading platforms to serve the BRICS and GCC markets – are critical in this space. MEX Exchange combines modern technology with a resilient infrastructure to offer secure and efficient trading, boosting liquidity and openness for investors and governments.
As we continue to integrate digital currencies into the financial mainstream, it is vital that we maintain the highest standards of regulation and security, so that investors can participate in the future of finance with confidence.
Naser Taher, Founder and Chairman of MultiBank Group
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