The Saudi central bank indirectly invests in Bitcoin by investing in the strategy, which has $ 60 billion in currency

In a rare step which indicates a major change in global reserve strategies, the Saudi central bank has revealed an investment for computer science to strategy (formerly Microstrategy), to represent the first indirect investment in the kingdom in Bitco-BTC, the largest digital currency in the world in terms of market value.

This came in a disclosure of the American Securities and Exchange commission (SEC) on May 16, indicating that the Saudi central bank holds 25,656 Strategy shares, the largest Bitcoin (BTC) company in the world.

Previous Cryptonews reports have indicated that the strategy has 568,840 Bitcoin currencies, estimated at around 60 billion dollars.

Why is the Kingdom of Saudi Arabia invested in Bitcoin?

Central banks are known to prefer – traditionally – Gold and the US dollar as rescue active.

However, in the light of global transformations to innovation and decentralization, it seems that the Kingdom of Saudi Arabia is moving towards a hybrid approach between stability and benefits from the growth capacities offered by digital assets.

This investment is similar to the Norwegian Sovereign Wealth Fund strategy, which has CRIPTO company actions such as Coinbase and Strategy, in order to take advantage of the market directly without having Bitcoin directly.

According to the Bitcoin Treasuries website, a good number of countries – including El Salvador, Ukraine, Bhutan and the United States – now invest in Bitcoin through possessions in sovereign funds or central banks.

The adoption of digital currencies in the Middle East develops and the Kingdom of Saudi Arabia is at the forefront of the Arab region

This investment stage occurs at the high frequency of adoption of the Crepto sector in the Middle East, especially in the Kingdom of Saudi Arabia. Bitget Research revealed that the number of chipo traders in the region exceeded 500,000 merchants per day in February 2024.

The Kingdom of Saudi Arabia recorded 129,397 users of digital currencies as its greatest number, bypassing the United Arab Emirates, who reached 106,111 users.

According to the Chainsysis report for the Middle East and North Africa in 2024, Circasso’s economy in the Kingdom is developing rapidly from one of its region’s counterparts, recording annual growth of 154% for the second consecutive year.

This moment, of which the kingdom is witness, is due to the interest in the innovations of blockchain technology, digital currencies of central banks (CBDC), the development of the game sector and the development that it is witness in the sector of financial technology in general, and all are in accordance with the objectives of the 2030 Vision to modernize and diversify its economy.

The countries of the Gulf Cooperation Council face difficulties in unifying chipto policy

In the example of the rest of the states of Gulf Cooperation Council, the Kingdom of Saudi Arabia has not yet reached the creation of an integrated legal system for entities working in the field of Chipo. Although adoption rates are increasing, the local market still lacks trading platforms subject to organizational supervision; This organizational gap increases in the light of the growing market activity.

In this context, IHSAN BOUHALIKA – The distinguished economic expert and former member of the Saudi Council of Shura – called for organizational coordination at the Gulf Cooperation Council, warning that partial policies could weaken the regional competitiveness of the Council countries.

Even in the absence of a complete organizational framework for virtual assets, Saudi Arabia continues to move forward during the adoption trip. For example, the Saudi central bank joined the Mbridge initiative in June 2024, and the initiative is an international payment network in the digital currencies of central banks (CBDC), in particular in the international oil trade between China and the Kingdom of Saudi Arabia.

Do young Saudi people accelerate the acceptance of digital currencies on the market?

The entry of the Kingdom of Saudi Arabia into the world of Bitcoin coincides with the growing interest of traditional silver giants in the kingdom. Goldman Sachs – which leads three global projects for the digital product of concrete assets – Rothschild recently in Riyadh.

Young Saudis are traveling strongly to the Crabibo sector, because almost two thirds of the Saudis are less than thirty years old and accept technology with great enthusiasm, making it one of the best adoptions of blockchain technology and digital currencies.

In addition, solid institutional support and flexible policies reinforce this characteristic, and these factors are rooted combined by the Kingdom of Saudi Arabia as a future pioneer in the adoption of digital currencies on a global scale.

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The position that the Saudi central bank indirectly invests in Bitcoin by investing in the strategy, which has $ 60 billion in the currency appeared first on Arab Cryptonews.