Saudi’s biggest oil exporter group Aramco denied all the allegations about the group’s involvement in crypto mining activities. However, the company green signaled its interest and investment plans in blockchain technologies.
Aramco The Saudi Arabian Oil Company incited curiosity among crypto lovers last year after investing $5 million in blockchain-based oil trading company Vakt. This act raised fall allegations about Aramco regarding bitcoin mining.
However, the company’s official statement dismissed all the allegations, it said:
“Regarding ongoing rumors claiming that the organization will indulge in Bitcoin mining exercises, Aramco affirms that these allegations are bogus and mistaken.” Many countries recently launched a crackdown against bitcoin mining. Pushing miners to flee into mining-friendly countries. However, Aramco denied the allegations about its involvement in mining. But company stayed neutral regarding the crypto mining process.
On the other hand, Saudi Arabia and the United Arab Emirates have emerged as crypto-friendly Middle Eastern countries. Both Saudi Arabia and the United Arab Emirates both have invested heavily in blockchain technologies. Besides these two, Bahrain is another country that favors crypto trading. The Central Bank of Bahrain recently supplied a license to native crypto exchange for legally operating within the country.
Saudi Aramco has an ancient history of investing in blockchain startups. One of the group’s subsidiaries invested to complete a $6 million deal with Data Gumbo Corp. As a result, Data Gumbo agreed on developing a private bank’s blockchain framework.
However, last month, the UAE Central Bank announced the country’s 2023-2026 digital plan. It highlighted the detailed initiatives to launch an in-house digital currency. The plan stated that UAE will take necessary steps to launch a digital identity system “to foster access to financial services.”
In the past couple of years, Middle Eastern countries received staunch criticism about the lack of technological advancements. People also raised that concerns that oil reserves in Middle Eastern countries are also shrinking. So, it is inevitable for the Middle Eastern countries to look for an alternative.
The development of digital systems and developments in launching native cryptocurrencies could shape up the future of cryptocurrencies. Experts do believe that Aramco’s current stance is neutral on the crypto mining operations. It is quite possible that after entering the blockchain market, the company might go for mining practices or invest in the mining process via its subsidiaries. As the digital market is future Saudi Arabia and other Arab countries are developing a mechanism to enter the digital market. However, Aramco’s involvement in crypto surprised crypto lovers. The Crypto community is now expecting more from the Oil industry giant. The recent signs are significant for the crypto market. The integration of the oil and blockchain market could open a new direction for the digital world in the future.