Dubai Proposes First Ever State-Issued Cryptocurrency
Many nations have contemplated the possibility of launching a state backed cryptocurrency due to increased security, convenience, and flexibility that they have to offer. Dubai, a strong supporter of blockchain technology, announced that they are working with Emcredit, a subsidiary of Dubai Economy, and a UK-based blockchain startup Object Tech to create the first state cryptocurrency called emCash. Government officials in Dubai believe that blockchain technology is going to be a turning point in both the technical and financial worlds that they want to be apart of.
Quote from Deputy Director of Dubai Economy Ali 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."
Emcash will have uses both government and domestic related ranging from paying for a coffee to utility bills and money transfers. In an announcement Dubai Economy released details about the app, available on smartphones, that will be used to utilize Emcash called Empay. The blockchain implemented will allow for a distributed ledger between all users in the ecosystem, increasing convenience significantly while cutting out a middle man. This is a big step in the right direction to provide a faster and more secure payment system for both the consumer and the merchant.
Dubai has been a strong proponent of cryptocurrency and its underlying blockchain technology for awhile now. They have partnered with Object Tech to implement Digital Passports for travelers visiting Dubai using blockchain technology and have recently signed deals allowing for BTC payments to be made in property sales. The government has also launched the “Blockchain Strategy” which is the push for all government documents to be stored on the blockchain by the year 2020. In the grand scheme of things Dubai is aimed at becoming the world’s first blockchain city by taking full advantage of this cutting edge technology in every aspect of their system of government.