Kingdom Holding CEO dismisses cryptocurrency investments at WEF Davos, aligning with Warren Buffett’s skepticism despite growing corporate adoption.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Kingdom Holding, led by Saudi Arabian Prince Alwaleed Bin Talal, recently dismissed investing in cryptocurrencies. The firm revealed that digital currencies are not on its radar.
As reported by CoinDesk, the firm’s CEO, Talal Ibrahim al-Maiman, said crypto has not yet proven its utility as a reliable payment method for goods and services.
This declaration, first reported by Reuters during the World Economic Forum (WEF) in Davos, underscores Kingdom Holding’s commitment to a more traditional, value-driven investment strategy.
Prince Alwaleed, a prominent member of the Saudi royal family, is widely known for his value-investing approach, often likened to Warren Buffett‘s strategy.
Like Buffett, Alwaleed has consistently avoided and criticized crypto investments, emphasizing its speculative nature.
Al-Maiman also agreed with Buffett’s view, saying that since digital assets cannot power purchases, the firm is not considering them for investment. Many commenters have faulted this positioning, considering many crypto payment platforms now operate in the industry.
Contrasting this view, many firms and countries are increasingly adopting virtual assets for transactions. As reported by Coinspeaker, major companies like Stripe, Tesla Inc (NASDAQ: TSLA), and Microsoft Corp (NASDAQ: MSFT) accept Bitcoin BTC $83 271 24h volatility: 3.3% Market cap: $1.65 T Vol. 24h: $36.58 B and other crypto assets as a means of payment.
Meanwhile, nations like El Salvador have adopted crypto as a legal tender, integrating it into daily commerce and finance. Nevertheless, Kingdom Holding’s cautious approach is based on practicality. The company has diversified its portfolio, worth around $13.6 billion in assets.
It focuses on stable and traditional focused industries such as finance, hospitality, healthcare, media, technology, and real estate instead of volatile assets such as Bitcoin.
Meanwhile, social media has circulated rumors about the Saudi royal family entering the crypto market. Speculation grew as pro-crypto President Donald Trump took office, and the US regulatory framework is expected to become more favorable to digital assets.
However, Kingdom Holding’s leaders have consistently denied involvement, maintaining its traditional investment outlook.
While cryptocurrencies continue to gain widespread popularity, many companies have chosen to stay away due to their volatility. Some have cited unclear regulations and a lack of widespread adoption for everyday transactions as reasons for not adopting it as a payment option or investment vehicle.
Regulatory clarity can provide stability, but strict policies like huge capital gains tax have made crypto less practical for daily business use. However, in a bid to attract more crypto businesses, many countries like the UAE and El Salvador are offering some forms of tax leniency to Bitcoin holders.
Beyond these lenient regulations, others generally add complexity and make it harder for businesses to adopt crypto for regular transactions. As a result, many businesses remain cautious about integrating crypto into their financial portfolio.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
