Dubai Department Of Finance Launches Blockchain-Based Payment System For UAE Government

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Dubai Department Of Finance Launches Blockchain-Based Payment System For UAE Government

The Dubai Department of Finance (DoF) in collaboration with the Smart Dubai Office (SDO) has launched a blockchain-based payment system for the government of UAE dubbed “Payment Reconciliation and Settlement”. The platform has been designed to support the government sectors primarily Dubai Police, Dubai Health Authority as well as Road and Transport Authority among others. The news was first reported by Zawya, the local news site.

The new blockchain-based payment system is designed to improve the working process of the government bodies for accuracy, transparency, and to initiate real-time payments between these sectors. Currently, it takes a minimum time of 45 days for any transaction to complete in the UAE, according to a report by Zawya.

The Payment Reconciliation and Settlement system has already been adopted by the Knowledge and Human Development Authority and the Dubai Electricity & Water Authority. Using the new launched blockchain-based payment system the two government bodies have already conducted a test transaction of more than five million. The SDO Director General, Aisha Bin Bishr said that the latest technology has come out in the most advanced and promising technologies of the time. SDO won the City Project Award at the 2017 Smart Cities Expo and World Congress held in Barcelona for its participation in the Dubai blockchain strategy.

The Smart City project was launched in Dubai in 2013 by Sheikh Mohammed bin Rashid, the vice president and prime minister of the UAE as well as the Ruler of the Dubai Emirate, ‘Sheikh Mohammed bin Rashid’. Later on, the project received support from private and public sectors as well as by the institutional partners. The goal of the project is to establish an ecosystem that helps government bodies and residential sector work in harmony.

This is not for the first time when the UAE government has taken an initiative to encourage the deployment of the latest technology. In April 2018, a new initiative dubbed ‘UAE Blockchain Strategy 2021’ by the Vice President and Prime Minister of the UAE. The goal of the initiative is to present the UAE as the leader in the adoption of the latest technologies.

In a similar news story, the Dubai International Financial Center reportedly signed a deal with Smart Dubai for the development of yet another blockchain-based technology called “Court of the Blockchain“. The core focus of the technology is to overcome any loopholes in the UAE’s legal system. Initiatives like blockchain-based verification can help improve the legal framework of the UAE and help it advance to a better future. The Court of the Blockchain initiative was announced in July 2018.

Blockchain technology has significantly impacted the working of the business firms. Adopting the technology for better governance can help the UAE authorities to curb delays and corruption within the system. The technology can help save time in processing transactions allowing the authorities to work on other crucial matters rather than waiting for the payment or transaction to process. The latest blockchain development by the UAE government is likely to benefit in the long-run.