An investment in Strategy, a U.S.-based development firm, was recently disclosed by the Saudi Central Bank. Through this investment, the bank has obtained its initial indirect exposure to Bitcoin.
A filing was submitted by the Saudi Central Bank to the U.S. Securities and Exchange Commission on May 16, indicating that 25,656 shares are now held in Strategy. Formerly known as MicroStrategy, Strategy is recognized as the largest corporate holder of Bitcoin globally, with a current holding of 568,840 Bitcoins valued at approximately $60 billion.
Previously, central banks had consistently favored gold and U.S. dollars as primary reserve assets. However, amid the ongoing global transition toward technological innovation, an alternative strategy appears to be under exploration by Saudi Arabia—one that aims to balance traditional financial stability with the growth potential offered by digital assets.
According to data provided by Bitcoin Treasury, Bitcoin exposure through central holdings has been pursued by over a dozen nations, including El Salvador, Ukraine, Bhutan, the United States, and most recently, Saudi Arabia.
A notable increase in cryptocurrency adoption across the Middle East—particularly within Saudi Arabia—has been observed. Research conducted by Bitget indicated that, as of February last year, the region surpassed an average of 500,000 daily crypto traders.
Regulatory Gap Persists Amid Crypto Activity Boom
Approximately 129,397 daily crypto users have been recorded in Saudi Arabia, while the United Arab Emirates has reported around 106,111. According to the Chainalysis 2024 MENA report, Saudi Arabia is experiencing more rapid expansion than any other region, achieving 154% year-over-year growth for the second consecutive year.
A comprehensive regulatory framework for cryptocurrency operations has not yet been established in Saudi Arabia, and no local exchange functions under formal regulatory supervision. Despite the increasing market activity and adoption within the country, no formal discussions regarding the introduction of a regulatory system have been initiated.
The nation’s transformation is being driven by its youthful population, with nearly two-thirds under the age of 30. Rapid adoption of technology has been demonstrated by this demographic, positioning them as ideal candidates for embracing blockchain and digital currencies.
Strong institutional backing and adaptable policy frameworks are regarded as key factors that could position Saudi Arabia as a potential global leader in cryptocurrency adoption.
