The UAE government’s constant efforts to promote digital finance and encourage crypto trading, including the recent Dubai Virtual Assets Regulation Law, has raised interest in digital assets, with two in three UAE residents interested in investing into cryptocurrencies within the next five years, according to the latest YouGov report.
Of these, young respondents between 25 to 34 years of age – which comprise 74 percent of the UAE respondents – are most likely to invest in cryptocurrencies, as compared to older adults, data from YouGov’s “The Future of Financial Services Report” report.
The report uses deep-dive custom research and data from YouGov’s profiles to explore the current global financial landscape, and identify the global adoption of, and trust in, new and emerging financial services across 18 international markets.
Data from the whitepaper suggests that interest to invest in cryptocurrency is high both in the long term as well as the short term.
Nearly one in five consumers in the UAE (21 percent) said that they intend to trade in cryptocurrencies in the next 12 months, the third-highest proportion across the surveyed markets, after Indonesia (25 percent) and India (22 percent).
Trust in crypto on the rise
The UAE tops global markets in terms of trust in cryptocurrencies, with approximately 40 percent of consumers stating that they trust this digital asset.
The UAE government’s recent enactment of the country’s first law governing virtual assets may have played a role in installing deeper trust among people in this asset class, the report stated.
Compared to the UAE, numbers are much smaller in western markets such as the UK (6 percent), France (9 percent), and Italy (11 percent), where laws governing virtual assets are not defined.
Although trust in cryptocurrency is high, there are concerns about digital finances, some more prevalent among respondents who intend to trade in cryptocurrencies.
While risk from hackers is the biggest concern about dealing in digital financial services, it is more concerning to those who intend to invest in crypto in the next 12 months.
Additionally, concerns persist around not being able to access money without an internet connection, identity theft, and fraud protection. Government regulation and lack of knowledge are some other barriers surrounding digital finances.
These concerns highlight the need for cryptocurrency providers to address these challenges in order to strengthen trust and expand the market.
The global sector head of Financial Services at YouGov, Emma McInnes, said: “The financial services industry has been undergoing rapid transformation driven by both changing consumer expectations and wider industry fragmentation. In the digital age of finance, the concept of money is continuously evolving.
“This has led to the creation of new financial assets like cryptocurrencies, which were once considered niche and short-lived, but now are becoming more mainstream. Although the popularity of digital currencies is growing worldwide, there are serious concerns about security and fraud.”
McInnes added: “Building trust among consumers is pivotal for this emerging asset class to accelerate adoption. Countries like the UAE have already created governing bodies to measure and promote the growth of virtual assets, and by doing so, it’s keeping itself ahead of most of the world in terms of developing the crypto market.”
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