Smart Dubai launches blockchain-based payment system for UAE government
Dubai is launching new initiatives in order to strengthen its role as a global leader in adopting blockchain technologies. The latest move comes from Smart Dubai initiative, which is launching a blockchain-powered Payment Reconciliation and Settlement System to enable real-time processing of payments and expedite government transactions.
Launched in collaboration with the Dubai Department of Finance, the new system allows transactions to be performed accurately, in real time and economizing time and effort.
As reported, the Dubai Electricity and Water Authority (DEWA) and the Knowledge and Human Development Authority (KHDA) were the first government agencies to join the system. Notably, they have already processed a combined total of more than five million transactions using the blockchain-based system.
More governmental, as well as financial sector institutions will be joining the system in nearest future.
#SmartDubai continues to grow through the horizon of success as they launch the “Payment Reconciliation and Settlement” System today, developed in collaboration with #Dubai Department of Finance as a #Blockchain-powered upgrade to its financial system. pic.twitter.com/fESbFBuKpj
— Smart Dubai (@SmartDubai) September 23, 2018
According to Dr Aisha Bint Butti Bin Bishr, Director General of the Smart Dubai Office, smart technologies continue to infiltrate every aspect of human life and societies. She called blockchain one of those promising technologies that attract more investments every year.
“Once again, Dubai was a pioneer in this sector and continues to make progress with the launch of the ‘Payment Reconciliation and Settlement’ System, which falls in line with the ambitious Dubai Blockchain Strategy, launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council. The Strategy seeks to increase government efficiency by transferring 100% of government transactions to the Blockchain network.”
In his turn CEO of the Smart Dubai Wesam Lootah talked about the benefits of the new system.
“The new and advanced ‘Payment Reconciliation and Settlement’ System offers Dubai Government entities many significant benefits… Besides enabling near real-time reconciliations and settlement, the System eliminates friction from financial processes through automation and minimizing human intervention. It allows for clear visibility of funds; immediate disputes and claims resolution; transparency and immutability of financial records.”
It is worth mentioning that this summer the launch of world’s first court of blockchain was announced in Dubai. The court’s functions are streamlining the judicial processes, removing document duplications and driving improved efficiencies across the legal ecosystem.
As Cryptos.com informed in April, Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai announced that by 2021, 50% of government transactions on the federal level will be conducted using blockchain technology.