Why are UAE authorities mining bitcoins but not buying cryptocurrency?
It was recently revealed that the UAE government mined $696 million worth of bitcoins at the current rate, but for some reason did not buy a single coin.
Researchers at Arkham have found that the UAE holds 6,333 BTC mined by Citadel, a company majority-owned by the state. This puts the Emirates fourth after the US, UK and Bhutan in the ranking of countries holding the largest amount of bitcoin.
List of countries whose governments hold BTC
Unlike the US and UK, the UAE’s bitcoins were not confiscated from the criminals, but mined by Citadel. 85% of the company’s securities are owned by the investment platform 2pointzero, which is fully controlled by IHC, a holding company owned by Sheikh Tahnoun bin Zayed al Nahyan of the Abu Dhabi royal family, Arkham employees said.
The reason why UAE authorities are hoarding bitcoins through mining but not purchasing the coins is most likely because the country’s central bank has not recognized BTC and other cryptocurrencies as legal tender. But the government of El Salvador, which has legalized Bitcoin In 2021, on the contrary, it bought digital assets and now owns at least 6,280 BTC worth $691,5 million.
