In a revelation that may surprise crypto enthusiasts, Kingdom Holding Co. (KHC), the investment firm led by Saudi Prince Alwaleed Bin Talal, has declared it has no immediate plans to invest in cryptocurrencies. The reason? According to KHC’s CEO Talal Ibrahim al-Maiman, it’s the lack of widespread adoption of digital assets as a payment method for goods and services.
Crypto’s Utility Problem
Speaking on the sidelines of the World Economic Forum in Davos, Al-Maiman echoed a sentiment that has long been a sticking point for crypto skeptics – the limited real-world use cases for cryptocurrencies. As he put it:
“We support Mr. Buffett’s theory that you don’t buy with, don’t invest in, so as we cannot buy any goods with cryptocurrencies, therefore we are currently not looking into investing in them.”
– Talal Ibrahim al-Maiman, CEO of Kingdom Holding Co.
This stance aligns KHC with legendary investor Warren Buffett, who has famously criticized bitcoin and other cryptocurrencies as speculative assets with little intrinsic value. Prince Alwaleed himself has previously expressed skepticism about bitcoin, declaring in 2017 that he believes it is “just going to implode one day.”
Dashing Royal Crypto Hopes?
The firm stance from Kingdom Holding pours cold water on longstanding rumors and speculation that the Saudi royal family was on the verge of making a major crypto investment. Some hopefuls saw the recently warmed U.S. regulatory environment under pro-crypto President Trump as a potential catalyst.
But for now, it seems one of the world’s most influential investors and his $13.6 billion diversified portfolio will remain on the crypto sidelines. The decision underscores the enduring obstacles to mainstream adoption that continue to plague the nascent asset class, even as institutional interest grows.
Key Takeaways:
- No crypto plans: Saudi Prince Alwaleed’s Kingdom Holding sees no near-term crypto investments
- Utility concerns: Lack of payment adoption is main reason cited
- Buffett-style investing: Stance aligns with Warren Buffett’s value investing philosophy
- Skeptical history: Prince has previously doubted bitcoin’s long-term prospects
- Adoption challenges: Decision highlights barriers still facing crypto’s mainstream use
As momentum builds in some corners of the crypto universe, the continued reluctance of major traditional investors like Prince Alwaleed and his Kingdom Holding firm serves as a reminder of the adoption and credibility hurdles that remain. While the tides may eventually turn, for now, the Saudi investment giant seems content to watch the crypto wave from the shore.
