The worth of cryptocurrency is now being recognized by major economies all over the world. It also shows that cryptocurrency will be the future of all financial dealings. And as we all know that Dubai has proven itself as a nation that is very open to using new developing technologies. Therefore, the government of Dubai has revealed that they will develop and use emCash, an encrypted blockchain powered digital currency that will allow residents to pay for government as well as for non-government services.
The cryptocurrency will be produced with a collaboration between emCredit, a branch of Dubai Economy and Object Tech (a UK-based blockchain start-up). Dubai Economy deputy director general Ali Ibrahim said in a press statement that:
“A digital currency has varied advantages – faster processing, improved delivery time, less complexity and cost, to name a few. 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 ease of business and quality of life.”
It looks like that the Government of Dubai is very confident about the new Blockchain innovation and taking effective and quicker actions to bring this technology into the city. The freedom and benefits of cryptocurrencies will surely make this choice a win-win for Dubai. The Government has even planned to implement Blockchain Technology in its all functions by 2020.
How does emCash work?
People of the Dubai will be able to use the emWallet application on their phone. When making transactions, users will be able to select between two payment choices, emCash digital currency or regular dirham payment. While the dirham payment will go via the normal pay out procedure and charge, emCash payments are sent and received in real-time. Also, vendors save the fee they would have to pay the intermediary.
According to emCredit, emCash will lower a number of scams that can occur as well as control monetary inflation. That is because the system issues the online currency in real-time, and it is directly connected to exact demand.
Earlier this year, the Smart Dubai Office – a govt-backed project directed by the Crown Prince of Dubai – combined a FInTech firm in the direction of the progress of a citywide blockchain transaction system. This specific effort will see all of the current 38 partner government organizations, financial bodies and other city departments linked over a blockchain payments system.
It will be exciting to see what happens after the roll out of emCash. Dubai seems to be moving closer to turning into the FinTech hub of the Middle East.
Cryptocurrencies in Other Countries:
The fact is that Dubai is not the 1st to have an “official” cryptocurrency. Japan and China Are Mostly Responsible for the Current Accomplishment of Cryptocurrency. Moreover, the Indian government is also taking notice of the same and is planning to launch their own cryptocurrency development initiative called “Lakshmi“.
It is still too soon to say whether Dubai’s choice to use a cryptocurrency will be recognized or criticised by its fellow city government bodies, like Abu Dhabi, which has a greater, oil-based financial system; and also bordering countries like Qatar, Iran and Saudi Arabia a complete host of massive oil and gas traders, all of these utilize US dollars to deal.
But as this trend of cryptocurrencies is clearly on the rise, and due to their expected positive results, they can no longer be ignored as a market economy system. The important question is will this surge will lead to the global adoption of a completely new currency and financial system?
As, we live in a multi-dimensional, fast-paced world and it is important that authorities compete in a progressively globalized and internet age by the usage of cryptocurrencies.