UAE accepts crypto as salary: will crypto soon receive a huge new inflow?

[KryptoBull]

UAE is a wealthy country renowned for its oil and strategic position in global financial transactions. In 2017, many crypto projects held events in Dubai to showcase their wealth and success, however, unfortunately, the UAE has since been less frequently mentioned in the blockchain and crypto community.

Recently, we have received positive news from the UAE regarding the widespread acceptance of crypto. Dubai Court of First Instance has ordered an employer to pay a portion of an employee's salary in crypto. The court's acceptance of the crypto as legal tender for salary payment is a testament to the growing maturity of the digital asset market and the UAE commitment to fostering innovation. As the UAE positions itself as a global crypto hub, this ruling serves as a powerful endorsement of its ambitions.

“This decision reflects a broader acceptance of cryptocurrency in employment contracts and highlights the court’s recognition of the evolving nature of financial transactions within the Web3 economy.” [1]

It is very difficult for us to hope that crypto will soon be used as a legal payment method in all daily microtransactions, but this decision can open up many use cases for crypto in other areas of the economy [2]. I consider this the first step for the UAE to adopt a crypto strategy on a national scale, similar to what El Salvador is doing with BTC.

The UAE economy is many times larger than El Salvador's (504B USD >> 34B USD) so I hope that crypto will soon receive a large inflow of capital from this country to escape the current boring adjustment phase. At the same time, CZ is about to complete his prison sentence, I hope the UAE can take advantage of CZ's intelligence and prestige to promote the development of crypto in this country.

I would like to know your opinion on this issue:

• Will crypto succeed in the UAE like it did in El Salvador?
• Do you expect new capital from the UAE to flow into the crypto market?
• Do you think the UAE could soon become a crypto hub?

References:
[1] Dubai court recognizes crypto as a valid salary payment
[2] How The UAE Became A Crypto Hub Poised For Explosive Growth
Note:

• My opinion has been presented in a topic, on BitcoinTalk forum.
• This topic on AltcoinsTalks forum has included a minor change in the way my opinion is presented.
• This statement is to avoid accusations of plagiarism.

[EluguHcman]

If the judiciary court of law could accept crypto currency for payments then ideologically there is everyone possibilities that UAE government would advance to adopt the legal tendering as official other mean of payments in the present or absent of their AED because the court is an overall of the government which practices what is expected by the people.

[ABCbits]

• Will crypto succeed in the UAE like it did in El Salvador?
• Do you expect new capital from the UAE to flow into the crypto market?
• Do you think the UAE could soon become a crypto hub?

1. Depending on the definition of success", i would say no since you can't pay with cryptocurrency on UAE.
2. From this news (accept crypto as salary) alone? Most likely no. I only expect cryptocurrency company would offer it's worker to be paid in cryptocurrency.
3. I don't know.

[Themepen]

I think it is good idea for courts in UAE as they are starting accepting cryptocurrency as payment. This could be important step towards government accepting it as valid form of payment. If  courts accept it it will make cryptocurrency more credible and might lead to it becoming official way to pay.

This will fit with UAE goal of being a leader in innovation and technology. It will also show that government is willing to adapt to new ideas and meet  changing needs for people. If courts start accepting cryptocurrency  government may follow it too and we may see it become official way to pay in UAE it will possible even instead of traditional currency AED or may be they can release CBDC.

[Mia Chloe]

1. Depending on the definition of success", i would say no since you can't pay with cryptocurrency on UAE.
2. From this news (accept crypto as salary) alone? Most likely no. I only expect cryptocurrency company would offer it's worker to be paid in cryptocurrency.
3. I don't know.

Yeah you have a point. If the UAE isn't going to be accepting crypto as a legal form of trade or as a regular accepted form of payment then there isn't even a need for them to allow people to get their salaries paid in crypto. If you should actually come to think about it, it isn't as easy as most people think it is to invest with money earned from salary pay. It's not really necessary if the person would still have to sell those coins online to be able to get their regular fiat to spend.
Crypto has to first of all be a legal tender there for crypto investment and holding to have an advantage there. Most people will see it useless to invest in something they can't make payments directly with.

[TomPluz]

1. Will crypto succeed in the UAE like it did in El Salvador?
I think El Salvador is quite a very different example all because it is a country that has no official national currency and it then adopted Bitcoin as such. UAE has a big potential though of becoming a big player in the crypto market all because it is a country whose people are known to possess large assets that can be converted to crypto as investments. And the government is recognizing crypto as legit asset so its people can participate in the industry openly.

2. Do you expect new capital from the UAE to flow into the crypto market?
Yes, of course, since this is a wealthy nation and so the people maybe attracted to invest heavily with crypto assets especially Bitcoin and Ethereum, for that matter. Hopefully, something can be done to put more excitement into the crypto industry in UEA so more people will join us there.

3. Do you think the UAE could soon become a crypto hub?
There is a big possibility for that but I think there also other countries in the Middle East region who are looking into the same thing. This all depends a lot on the government itself and the players who will join its vision of making UEA a crypto hub...but given its potential I see no reason why this will not come true soon.

[LogitechMouse]

I wonder if this kind of thing happened many times already. I also want to know if the employee really wanted it. There's a chance that this might just be an experiment as well. Nevertheless, seeing one employee being paid half of his salary through Bitcoin is a good move, but nothing significant unless the adoption there will be much higher or instances like this where many employees will accept their salary through Bitcoin will increase.

---
I would like to know your opinion on this issue:

• Will crypto succeed in the UAE like it did in El Salvador?
• Do you expect new capital from the UAE to flow into the crypto market?
• Do you think the UAE could soon become a crypto hub?

1. TBH, it's hard to predict. I mean nobody expected that El Salvador will be the first country to accept Bitcoin as a legal tender. For me, it's hard to know if UAE will be the next one.
2. Yes, but it will be a gradual process and it will not happen overnight or in a few weeks only. It will take time before we feel the effect of the new capital coming from UAE. We don't even know if crypto will be adopted by many people in UAE as well.
3. There might, or there might not be. Whatever happens, I guess UAE is very interested in adopting cryptocurrency.

[MrSpasybo]

I would like to know your opinion on this issue:

• Will crypto succeed in the UAE like it did in El Salvador?
• Do you expect new capital from the UAE to flow into the crypto market?
• Do you think the UAE could soon become a crypto hub?

1. I hope that UAE will be the next place to witness the success of crypto when it allows crypto to penetrate deep into the economy. Initially, it will be salaries, followed by large and small payments within the economy, and crypto will become an indispensable part of UAE society.

2. UAE is a wealthy country, if just a small portion of people's assets flows into BTC, we will already have seen impressive growth of BTC and many tokens in this market. I'm waiting for the bullrun so I won't reject any cash flow or opportunity.

3. Many countries want to become crypto-hub, including Hongkong and the US, but right now it's difficult to determine which country will be crypto-hub in the future. We will continue to follow and wait for their success, the race to become a crypto-hub can actually promote the development of crypto on a global scale.

[Findingnemo]

I don't really have much knowledge in the legality but I am sure court doesn't has the authority to announce something as a legal tender so in this case things are misinterpreted a bit, it's just asked the employer to pay a portion in crypto and the reason for that can be known only if we analyse what the actual case is.

UAE has been always crypto friendly but I am not sure they reached a position of making it as legal tender but if they do then it's bigger than El Salvador and will take crypto adoption to next level.

[Rubel007]

UAE has long expressed its willingness to embrace crypto. But they could not implement it that way. The country is trying its best to create a crypto hub. UAE is also becoming known as a paradise for crypto enthusiasts. UAE is open to people from around the world  who can not using crypto in their country. I think the country is moving forward and they will move further in the future. Like El Salvador in the future, they will support crypto massively. We have already got a proof that they have now issued a legal notice to partially pay their salaries using crypto.

[Cryptsafe]

If I am not mistaken, the UAE has long been a crypto hub for crypto enthusiasts. Years back, there have been series of crypto/blockchain functions held in the nation and it has got lots of crypto organisations and people trooping into the country. The government as well plans to develop a crypto city/mining farm for crypto enthusiast and since then, there have been lots of development as regards crypto and blockchain in the country.

I am not surprised to seeing such news of this nature because I have long anticipated development of this nature in the UAE. I believe the country is far advanced in welcoming technological development and are ready to make every neccessary commitment to making sure they are ahead in technology. In less than no time some Asian countries would follow their step and that is how adoption begins.

[gunhell16]

If I look at that news in the UAE, it is good news for us crypto enthusiasts, honestly speaking, because the percentage of our crypto users in the crypto industry will increase again.

Now the question is, are there any companies in the UAE that have implemented that update for their employees? Then what percentage will the employers allocate there? Is it 100% of their employee's salary or just some portion?

[Vx1]

If I look at that news in the UAE, it is good news for us crypto enthusiasts, honestly speaking, because the percentage of our crypto users in the crypto industry will increase again.

Now the question is, are there any companies in the UAE that have implemented that update for their employees? Then what percentage will the employers allocate there? Is it 100% of their employee's salary or just some portion?

I'm sure there will be pros and cons about this, there will definitely be many people who disagree. Of course because the value of crypto fluctuates very high, unless they are paid using stable coins. And if they have determined payment with crypto, it will definitely be top news, not only there but also will spread to all corners of the world. It might also have a little effect, considering that the UAE is a big country.

[vegasus]

Many more positive news, will give good effects, of course.  This is one of them. UAE is an area that is very well known for its great financial situation. And crypto has not been used often there?

Oh, maybe this is the official rule. Actually, if it becomes good news, then it might have a little impact on the market getting better. However, it may not last forever. But what is certain is that if more and more people use crypto as a means of transaction, then the real purpose of crypto will be achieved. Yes, at least in some countries. because we often see strict regulations in some countries regarding the prohibition of crypto as a means of payment.

[Z-tight]

• Will crypto succeed in the UAE like it did in El Salvador?
• Do you expect new capital from the UAE to flow into the crypto market?
• Do you think the UAE could soon become a crypto hub?

1. If you are asking if BTC will become a legal tender in the UAE like it is in El Salvador, then i don't think so, i believe that many countries will adopt BTC in one way or another, but they wouldn't desire to make it a legal tender.
2. BTC inflows wouldn't come in just because because Dubai made it an option of salary payments.
3. A crypto hub is far away for now, but in the future, it is possible.