Saudi Arabia’s Role in Bitcoin and Blockchain: Facts, Speculations, and Strategic Interests

• Saudi Arabia explores Blockchain technology through Saudi Aramco investments, denying direct involvement in Bitcoin mining or trading activities.
• Speculations suggest Saudi Arabia may accumulate Bitcoin, aligning with its Vision 2030 strategy to diversify economic reliance beyond oil.

Saudi Arabia’s relationship with Bitcoin and blockchain technology remains a topic of intense debate and speculation. While the nation has not publicly confirmed investments or direct involvement in Bitcoin, a combination of rumors, blockchain initiatives, and economic strategy points to an evolving interest in digital assets and decentralized technologies.

Investment in Blockchain Technology

Saudi Aramco, the world’s largest oil company, has made headlines for its reported investments in blockchain-based companies. In 2021, rumors circulated about Saudi Aramco potentially engaging in Bitcoin mining. 

However, these claims were firmly denied by the company, which labeled them as “completely false and inaccurate.” Despite this denial, Saudi Arabia has actively explored blockchain applications, signaling an interest in leveraging the technology for industrial and financial purposes.

Bitcoin and De-Dollarization

The Kingdom has recently been linked to discussions around de-dollarization, exploring alternatives to the U.S. dollar for global trade. While Bitcoin has not been officially named in these strategies, its decentralized and borderless nature aligns with the goals of diversifying trade mechanisms. 

As Saudi Arabia seeks to modernize its economy under its Vision 2030 plan, cryptocurrencies like Bitcoin could play a role in reshaping its financial infrastructure.

Speculations on Bitcoin Accumulation

Rumors persist that Saudi Arabia may be quietly accumulating Bitcoin as part of its strategy to diversify its reserves and reduce reliance on oil revenues. Analysts and influencers in the cryptocurrency space have contributed to this narrative:

• David Bailey, CEO of Bitcoin Magazine, suggested that a Gulf nation, potentially Saudi Arabia or Qatar, could be among the top five global Bitcoin holders. While no direct evidence supports this claim, it underscores the possibility of such strategic investments.
• Justin Verrengia, a cryptocurrency influencer, speculated that Saudi Arabia and Qatar are considering substantial Bitcoin investments. His remarks point to the region’s growing recognition of Bitcoin as a store of value in a post-oil economy.
• Max Keiser, a prominent Bitcoin advocate, claimed that Gulf nations, including Saudi Arabia, could surpass institutional investors like BlackRock in Bitcoin holdings. While speculative, his comments align with the broader idea of Middle Eastern nations leveraging Bitcoin for wealth preservation and economic diversification.

Regulatory Stance and Regional Initiatives

Saudi Arabia has maintained a dual approach toward cryptocurrencies. The government has warned citizens about the risks associated with Bitcoin trading, emphasizing the lack of investor protections. Despite this caution, the Kingdom has been progressive in exploring blockchain and digital currencies.

A notable initiative is Aber, a joint digital currency project between Saudi Arabia and the UAE, aimed at facilitating cross-border payments. Although still in the pilot phase, this project highlights the region’s willingness to explore blockchain-based financial solutions.