Today's Edition
SARA ALZAABI (ABU DHABI)
Digital assets such as Bitcoin and stablecoins are transforming the ways families give gifts during Eid.
Distributing Eidiya is a long-held tradition of handing cash gifts to younger members of the family during Eid celebrations. These days, however, the rise of cryptocurrency has been reshaping the practice.
In an interview with Aletihad, Nadeem Ladki, Global Head of Bitpanda Technology Solutions, said "the cherished tradition of gifting money during Eid is evolving in step with the UAE's digital transformation."
"While the sentiment remains unchanged, the medium is shifting from physical cash to digital assets like Bitcoin, Ethereum, and stablecoins," Ladki said.
"This shift is more than just a novelty - it reflects the UAE's increasing embrace of financial technology and innovation."
The country has seen a 41% surge in crypto app downloads in 2024, according to recent research from analytics platform AppsFlyer. This means "digital assets are becoming mainstream and the idea of gifting crypto as Eidiya is a natural extension of this trend", Ladki said.
'A Gift that Keeps on Giving'
Beyond convenience, digital Eidiya offers financial empowerment, the expert said. "By adopting digital Eidiya, families are not just keeping up with the times but also exposing their loved ones to the world of decentralised finance."
In the crypto sphere, the traditional Eid cash gifts are being converted into appreciating assets. This encourages interest in investment, blockchain technology, and long-term wealth creation.
Digital Eidiya can then set a new paradigm of financial traditions that transfers across generations.
Explaining why digital Eidiya is a better choice than cash, Ladki said: "Unlike traditional cash, which often disappears into quick purchases, digital Eidiya has the potential to grow in value, making it a gift that keeps on giving. A Dh100 gift in Bitcoin last year could have appreciated by over 24%, turning a simple holiday gesture into an investment opportunity. This shift encourages a mindset of financial growth rather than instant gratification, introducing recipients to the power of long-term investing."
"Additionally, digital Eidiya is borderless, ideal for a place like the UAE, where families are often spread across different countries. With crypto, sending an Eid gift across the world takes seconds and incurs minimal fees, making it far more efficient than traditional bank transfers," he said.
Standards for Safe Crypto Adoption
Ladki stressed that giving a crypto Eidiya could be an instrument for financial literacy as it exposes children and families to a long-term investment approach rather than just spending and consumption.
Early exposure to crypto equips young recipients with financial skills for the future, he said.
Now that more people are embracing digital assets in the country, the UAE is settting "the standard for safe and regulated adoption", Ladki said.
"The Securities and Commodities Authority (SCA), the Virtual Assets Regulatory Authority (VARA), and the Abu Dhabi Global Market (ADGM) have been proactive in rolling out comprehensive regulations that protect both investors and businesses. By enforcing KYC (Know Your Customer) and AML (Anti-Money Laundering) guidelines, the government ensures that crypto transactions remain transparent and secure. This regulatory clarity has positioned the UAE as one of the most crypto-friendly jurisdictions globally, attracting major blockchain firms and investors," he said.
With AE Coin, a stable government-backed digital currency aimed at assuring consumers and pushing crypto adoption forward, the UAE is now in a phase of integrating digital assets into mainstream finance, Ladki said.
While digital assets enjoy heightened protection mechanisms, these are also used and exchanged under strict regulatory scrutiny, he added.
With companies like Bitpanda, transactions are securely protected through encryption, two-factor authentication, and cold storage.
"Additionally, education plays a vital role in risk mitigation. By familiarising recipients with best practices, such as using reputable exchanges, securing private keys, and avoiding phishing attempts, digital Eidiya remains not only a forward-thinking financial gift but also a safe one. In many ways, crypto's traceability and transparency make it a more secure alternative to cash, which can be lost or spent without oversight," Ladki said.
