Dubai to Use Blockchain Technology for 50% of Its Transactions by 2021

  • Over half of Dubai’s banking transactions are set to be made using blockchain technology by 2021
  • Incorportating blockchain technology is an integral part of Dubai's 'Smart City' project

It's expected that Dubai, the capital of the United Arab Emirates, will see half of all its banking transactions be made using blockchain technology by 2021. This according to the UAE’s ruler, Sheikh Mohammed bin Rashid Al Maktoum.

The Sheikh has stated his intention to bring the Emirates into the 21st century. This news comes as the Emirates undergo a drastic policy of technological modernization called 'Smart Dubai'.

Major names in the cryptocurrency sphere attended a cryptocurrency forum in Dubai. The event involved the discussion of the future applications for cryptocurrency and blockchain within the modern world.

Far from being opposed to the application of blockchain technology, major names in banking are rapidly embracing the innovation. According to major figures there, it's an inevitability, with companies split between opposing or embracing it.

"No one has a choice I think, no one should ignore this industry... Customers, suppliers and shareholders are going to be linked through a common system. This business and this technology are going to do away with banking.”

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Dubai’s project plans to use blockchain technology on all of its layers, from its government, to public and banking transactions. The takeover of blockchain within the world of transactions is not restricted to just impact on banking. According to Gulf Business in April, more than half of governmental transactions will be made through blockchain by 2021 as well.

ECB Should Use DLT for Euro Payments, Says Deputy Governor of French Central Bank

Denis Beau, the First Deputy Governor of Banque de France has recommended using distributed ledger technology (DLT) for settlements within the Eurozone.

The European Central Bank (ECB) “should be open to experimenting” with blockchain and distributed ledger technology (DLT), as a way of settling euro-denominated transactions, said Beau during a speech last Thursday (November 21) in Paris at the second annual Capital Markets Technology and Innovation Conference.

He cited the growing demand for faster transactions, both within and without the EU’s Eurosystem – the network of ECB and national European central banks using the euro currency – as cause for experimenting with blockchain/DLT, saying that existing solutions are “costly for end users [and] slow and unsafe across the world, in particular in emerging countries.”

The French central bank has in fact already been building a pilot blockchain system, as the Deputy Governor pointed out. This is the so-called “MADRE” payments register, an experimental system that aims to store all Credit Identifiers of the SEPA system (Single European Payments Area) on a blockchain. While technically operational, MADRE does not seem to be used yet for any actual money transfers, and it is still only a prototype.

The broader theme of Beau’s talk was that of a self-aware style of innovation, which is cognizant of the potentially negative consequences of innovation – innovation that creates “imbalances” and has “uncertain” long-term benefits to society. Encapsulating these notions, Beau said that economic growth should be “sustainable” and “inclusive.”

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