Dubai Will Issue First Ever State Cryptocurrency

| 02/10/2017 | Reply
TWO ARTICLES
Dubai Will Issue First Ever State Cryptocurrency

The local government in Dubai has officially launched its own cryptocurrency called emCash, according to announcements by local news media outlets. The cryptocurrency would be used for payment of governmental and nongovernmental services.

According to Ali Ibrahim, Deputy Director General of Dubai Economy, the token will be considered legal tender “for various government and non-government services, from their daily coffee and children’s school fee to utility charges and money transfers.”

Dubai embracing Blockchain technology

The flexibility and convenience of cryptocurrencies makes the solution a win-win for Dubai. The government is strongly pro-Blockchain and sees it as the next major wave of paradigm changing technologies, and wants to be forward-thinking in adoption. According to Ibrahim:

“The fast-paced environment and incredible willingness to adopt innovative technology has made Dubai the perfect place for us to do business. This project is a great example of the ambition we have met here, together we are essentially creating a whole new economic ecosystem. It will harness Blockchain technology to make financial transactions cheaper, faster and more secure while demonstrating the huge advantages of embracing this technology for governments, business and customers alike.”

Blockchain technology, as a system for a number of various services, has been widely embraced in the country. Dubai is seeking to become a fintech hub for the eastern world and has even recently signed deals to allow for property sales entirely in Bitcoin.

The new cryptocurrency will move the country’s adoption paradigm forward.

ARTICLE TWO

Article Two by Arabian Business – 26 September

Dubai signs deal to create digital currency emCash
Emcredit, a subsidiary of Dubai Economy, and UK-based Object Tech Group Ltd will work together on new technology.

A partnership has been set up to develop and implement emCash, an encrypted digital currency, which people can use to pay for various government and non-government services in Dubai.

According to state news agency WAM, Emcredit, a subsidiary of Dubai Economy, and the UK-based Object Tech Group Ltd will work together to establish contactless payments.

Based on the latest blockchain technology, emCash will be the digital currency in emPay wallet, launched by Emcredit to support contactless payments.

emPay will allow the UAE residents to make varied payments through the near field communication (NFC) option on their smartphones.

With emCash, emPay users will have the option of a secure digital currency, and merchants can receive such payments in real time without going through intermediaries.

Ali Ibrahim, deputy director general of Dubai Economy, said emCash would give a financial identity to contactless transactions, reinforce Dubai as a competitive business destination, enhance customer happiness and accelerate Dubai’s evolution into a smart economy.

“A digital currency has varied advantages faster processing, improved delivery time, and less complexity and cost. It will change the way people live and do business in Dubai, and mark a giant leap for the city in harnessing game-changing innovations to improve the ease of business and quality of life. We are delighted to have Object Tech as our partner in this initiative and the Dubai Economy Accelerators programme. Obtaining the approval of other UAE authorities will be considered if required,” he added.

Muna Al Qassab, CEO, Emcredit Limited, added that emCash also reduces fraud, as well as inflation, since the currency is issued in real time, based on actual demand.

 

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Category: Finance & Investment, Islamic Economy, Middle East & Africa, Research, Trends

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