In the UAE, more people are turning to Bitcoin and stablecoins for sending money home. While traditional methods still dominate, the use of cryptocurrency is slowly gaining traction and is expected to grow significantly in the coming years.
“Consumers are beginning to use Bitcoin and stablecoins for remittances,” said Ian Dillon, co-founder of NOW Money, a platform supporting low-income migrant workers in transferring money home since 2017. “Currently, the adoption rate is just 2%, but that’s a big jump from 0.5% a few years ago. Within the next five years, this could grow to 10%,” he added.
Ian shared these insights during the Bitcoin MENA conference in Abu Dhabi, which brings together global cryptocurrency experts to discuss challenges, opportunities, and innovations in the region.
Why Are Bitcoin and Stablecoins Becoming Popular?
Khurram Shroff, a prominent figure in the cryptocurrency world known as the “Arab Whale,” highlighted why digital transfers are gaining momentum. “If someone leaves a money exchange with cash, they become a target,” he explained. “Using digital transfers is safer for both the sender and receiver. This is why there’s a growing preference for stablecoins like USDT (Tether) in money transfers.”
What Are Stablecoins?
Stablecoins are cryptocurrencies pegged to stable assets like currencies or commodities. Their consistent value makes them a preferred choice for international money transfers. For example, USDT (Tether) is tied to the US dollar, offering stability and ease of use.
Global Examples of Bitcoin Remittances
Michael Peterson, founder of Bitcoin Beach, shared an example from El Salvador, where cryptocurrency remittances have influenced traditional financial institutions.
“In El Salvador, companies like Western Union and MoneyGram have reduced fees by 50% because they know they can’t compete with Bitcoin in the long run,” he said. “Initially, it may seem like Bitcoin remittances aren’t widely adopted, but over time, they’ll dominate this space.”
Challenges in Adopting Bitcoin for Remittances
Despite the benefits, challenges remain. Ian Dillon noted that trust is one of the biggest hurdles for migrant workers.
“For many workers in the UAE, sending money through a bank feels secure because they can physically visit the institution if there’s an issue. With digital transactions, they worry about what happens if something goes wrong,” he explained.
In El Salvador, even though Bitcoin is legal tender and 26% of the country’s GDP relies on remittances, many people stick to traditional methods. “Habits around money are deeply ingrained, and change takes time,” said Michael Peterson.
As the cryptocurrency ecosystem continues to grow, the adoption of Bitcoin and stablecoins for remittances in the UAE is likely to rise, offering faster, safer, and more cost-effective options for global money transfers.
