Introduction
Cryptocurrencies, especially Bitcoin, have given a new direction to the global economy in the past decade. This digital financial system has become the focus of attention not only of investors but also of countries. Recently, rumors have been circulating that Saudi Arabia has made a large investment in Bitcoin. In this article, we will examine the veracity of this news, its impact on the region, and the historical and economic dimensions of the global trend of making crypto a "reserve".
**Saudi Arabia and Bitcoin: Fact or Rumor?**
Saudi Arabia, which traditionally relies on an oil-based economy, has stepped up efforts to diversify its economy under its “Vision 2030.” Although the Saudi government has yet to officially confirm its investment in bitcoin, observers believe the kingdom is embracing the technology and new financial instruments. Saudi Arabia’s central bank, SAMA, has begun experimenting with digital currencies, but has been cautious about legalizing decentralized cryptocurrencies like bitcoin. Possible reasons for this include financial stability, Sharia law (Islamic finance) requirements, and the volatile value of crypto.
**Impact on neighboring countries: imitation or caution?**
Saudi Arabia’s decision could have the most profound impact on the Gulf Cooperation Council (GCC) countries. The United Arab Emirates (UAE), for example, has already announced that it will legalize digital assets, making Dubai the “blockchain capital.” If Saudi Arabia also adopts crypto, it could spark an economic competition in the region. However, other countries such as Kuwait or Oman are still far from this trend, as their economies are more cautious and rely on traditional financial structures.
**Imitating the Trump Administration: Is it Useful?**
The administration of former US President Donald Trump partially welcomed cryptocurrency, after which several countries accelerated their efforts to adopt digital finance. Saudi Arabia’s possible move also seems to be part of the same global trend. Economic convergence with the US could provide new opportunities for the Saudi economy, especially as the US itself is working on a digital dollar (CBDC). However, the Saudi government has been cautious in view of Sharia and economic concerns.
**Why Crypto Reserves? Current and Future Requirements**
There are two major reasons why countries globally are creating “crypto reserves”:
1. **Getting rid of the dollar's hegemony:** Traditionally, the US dollar has been the global reserve currency, but due to political conflicts and sanctions, many countries are looking for alternatives. Cryptocurrencies can give them financial sovereignty.
2. **Economic Resilience:** Crypto's decentralization and ability to transact quickly can help economies weather crises.
**Is traditional value disappearing?**
It is premature to say that traditional currencies are losing their importance. Currently, cryptocurrencies account for just 1% of global GDP. However, central banks are working on the development of a digital currency (CBDC), which will serve as a bridge between the traditional and digital systems. In the future, a hybrid system may prevail, where both forms will be important in their own right.
**Result**
Saudi Arabia’s investment in Bitcoin is still a hypothesis, but it is clear that the kingdom wants economic transformation through technology. This step is both a challenge and an opportunity for neighboring countries. The crypto reserve trend is a response to global economic imbalances, in which the transition to digital assets seems inevitable. However, traditional value will remain in its place, as its legitimacy and stability are still unassailable. The future will probably be one of harmony between these two systems, where innovation and tradition complement each other.
