Who are the people using crypto as payment?

GB Market Commentary 06/06/2022

by Marcus Sotiriou

Yesterday Bitcoin printed its first green weekly candle in 10 weeks as the crypto markets are seeing some relief this morning. Bitcoin is now facing significant resistance around $31,500-$32,000, but if it can hold above this level, we can expect continuation to the upside.

Dubai is progressing with crypto adoption as the country’s retail giant, Majid Al Futtaim, has partnered with Binance to accept cryptocurrencies at its 29 malls and 13 hotels. According to the Binance CEO, CZ, “Majid Al Futtaim is one of the most prestigious businesses in the Middle East and has millions of customers every year.” Binance Pay, which supports more than 40 cryptocurrencies, will be integrated so that millions of customers to pay with cryptocurrencies at Majid Al Futtaim’s various destinations. In 2021, its malls had 175 million visitors.

In addition, a Dubai-based luxury property developer DAMAC has made $50m in property sales settled with crypto in 2022. It is evident that the UAE is fast becoming a crypto-friendly country as crypto is being used as payment extensively.

The topic of crypto adoption was dived into by Block Inc. (formerly Square Inc.) recently. The financial services and digital payments firm released Bitcoin: Knowledge and Perception, a report detailing a survey of 9,500 participants in 14 countries across Americas continent, Europe Middle East, Africa (EMEA), and Asia-Pacific (APAC) with the purpose of addressing common misconceptions about Bitcoin.

One of the key highlights in the report was addressing who buys bitcoin and why. The report found that, in general, lower income countries use Bitcoin for utility reasons, such as purchasing goods or sending money, while higher income countries buy Bitcoin more as a means of investment. This makes sense due to the lack of financial infrastructure in lower income nations like Nigeria and Vietnam and highlights the greater need for crypto in these areas.