Cryptocurrency vs Traditional Banking in the GCC

Due to the rise in popularity and adoption of cryptocurrency, various questions have been raised about its coexistence with traditional banking, particularly in the Gulf Cooperation Council (GCC). The GCC region has acclaimed its position as one of the world’s largest sources of outbound remittances while lacking unified approaches to crypto regulation. This study compares cryptocurrency and traditional banking across five dimensions: transaction efficiency and cost, security, user trust, regulation, and long-term sustainability. The specific focus of the study was targeted towards the under researched perspective of young people. A sequential explanatory mixed-methods design was used, and data was collected through an online questionnaire and semi-structured interviews where 29 and 15 financially literate respondents completed respectively. Respondents' perspectives showed the following: cryptocurrency was faster (75.9%), cheaper (55.2%), more adaptable to the digital habits of younger generations (72.4%) and viewed blockchain technology as more resistant to large-scale hacking (75.9%). However, traditional banking was more trusted to safeguard wealth during a crisis (65.5%) and to protect users from fraud (58.6%), while 65.5% considered the lack of global crypto regulation too risky. The study concludes that neither will replace one another and instead they should move towards convergence where banks could adopt blockchain in areas that improve payments without weakening consumer protection.