The Dubai International Financial Centre (DIFC), a special economic zone and a financial hub for the Middle East, Africa, and South Asia markets, has announced that it has approved XRP, the native cryptocurrency of Ripple, for use within its jurisdiction.
This decision marks a significant milestone for the adoption and recognition of XRP in the region and beyond.
XRP has proven to be a digital asset for fast, low-cost, and scalable cross-border payments for years.
It is powered by the XRP Ledger, a decentralized blockchain that can handle up to 1,500 transactions per second.
XRP is also designed to be environmentally friendly, as it consumes negligible amounts of energy compared to other cryptocurrencies.
The DIFC’s endorsement of XRP comes after Ripple, the company behind XRP established its Middle East and North Africa (MENA) headquarters in Dubai in 2020.
Ripple chose Dubai as its regional base due to its strategic location, progressive regulatory environment, and vibrant fintech ecosystem.
Ripple has also partnered with several local banks, such as the National Bank of Fujairah, Bank Dhofar, and Kuwait Finance House for cross-border payments.
This approval also follows its previous recognition of Bitcoin, Ethereum, and Litecoin as virtual assets in 2021.
Now, Bitcoin, ETH, and Litecoin are all seen as virtual assets in the UAE’s economy.
Furthermore, IFC’s greenlighting of XRP coincides with the Ripple Swell event, which takes place in Dubai from November 9 to 10, 2023.
The event promises a house of global leaders, regulators, and industry experts to discuss the future of finance and digital assets in transforming the global economy.
Finally, this move is more than just regulatory compliance; it’s a declaration of Dubai’s vision to integrate the best technology with financial services.
It also signals a broader acceptance and support for the digital asset, paving the way for over 4,000 companies within the DIFC to engage in transactions using XRP.