Analyst Teases Potential UAE Financed Shiba Inu Reserve

Countries are warming up to crypto reserves, and Shiba Inu has been tipped as a potential candidate for the UAE considering earlier collaboration a few months ago.

Digital asset analyst Del Crxpto has suggested that the United Arab Emirates (UAE) may introduce a national crypto reserve, including Shiba Inu (SHIB). 

Notably, this occurred days after the U.S. launched its own digital asset reserve, leading to speculation that other crypto-friendly nations may follow suit.

Why the UAE Might Consider a Crypto Reserve

Last week, the crypto community saw different market updates. For example, the U.S. government announced two separate crypto reserves: one holding only Bitcoin and digital asset stockpiles for altcoins like XRP and Cardano. 

These reserves will be funded using seized crypto assets from legal cases. Since then, industry experts have speculated that major economies, including the UAE, could introduce similar initiatives.

Del Crxpto’s recent post on X fueled this discussion, suggesting that the UAE could include Shiba Inu in its potential reserve. However, he did not give a timeline or details supporting this claim. 

Since the post was made, the idea has gained traction within the Shiba Inu community. This is because of the UAE’s existing ties to the project.

Last month, the UAE announced a collaboration with Shiba Inu to explore ShibOS, a blockchain-based system intended to improve governance and public services. 

This was an intriguing development for the community, as the UAE opted for Shiba Inu’s technology over other well-established blockchain projects.

Given this current partnership, many believe SHIB could be included if the UAE decides to create a crypto reserve.

Still, some market experts are concerned about SHIB’s market position. Last month, wallets holding between $100,000 and $1 million worth of SHIB dropped by 16%, suggesting a weak direction for the asset. 

What Are the Chances of SHIB Reserve Happening?

Despite the growing conversation, the UAE government has not mentioned plans for a national crypto reserve. However, the country has embraced digital assets proactively, positioning itself as a major player in the global crypto industry.

Unlike the U.S., which is still developing its regulatory framework, the UAE already has clear crypto regulations, such as Dubai’s Virtual Asset Regulatory Authority (VARA). 

While this provides a strong foundation for a potential reserve, there is no official indication that the UAE will move forward with such a plan, let alone that Shiba Inu would be included if it did.

Meanwhile, since the post was made on X, SHIB’s price has nosedived. It is now down by 1.31%, and trading at $0.00001177.

Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.