Abu Dhabi prepares $2b fund for Web3 startups
The United Arab Emirates (UAE) has been known for its neutral stance on cryptocurrencies — neither prohibiting nor licensing the asset class. Recently, the capital of the UAE, Abu Dhabi, announced massive funding for Web3 startups.
Abu Dhabi’s tech ecosystem, known as Hub71, announced its Web 3 division on Feb. 15. According to the UAE news company WAM, the new initiative, called the “Hub71+ Digital Assets,” has been given a $2 billion fund that will be dedicated to building and growing Web3 and blockchain startups.
Moreover, the new department will still be based at Hub71 while providing top-notch services and blockchain infrastructure to Web3 companies. The Deputy CEO of Hub71, Ahmad Ali Alwan, stated that Hub71+ Digital Assets could bring global changes to the decentralized world while noting the importance of blockchain technology in the next generation of the internet.
It’s important to note that the UAE minister of state for foreign trade, Thani Al-Zeyoudi, stated the country’s plans to utilize digital currencies at the World Economic Forum (WEF) last month. Speaking to Bloomberg, Al-Zeyoudi added that cryptocurrencies could be essential to UAE’s non-oil trade in the region.
Furthermore, the gulf country has forged another initiative, the financial infrastructure transformation (FIT) program, to develop a central bank digital currency (CBDC). The Central Bank of the United Arab Emirates (CBUAE) has been working on the digital dirham that could improve the country’s international trade.