In Dubai, the implementation of the blockchain application strategy continues until 2021. The Ministry of Finance of the Arab Emirates has recently launched a blockchain system for financial transactions between state institutions.
In Dubai, a block-system of payments and settlements has been launched
Dubai Finance Department together with the Smart Dubai office, responsible for the introduction of advanced technologies in the public services, launched a blockchain payment system – so-called “Payment reconciliation and settlement”.
The system allows government agencies to reduce settlement time and to minimize risks of the human factor or undesirable interference.
The first government institutions that tested the new system were the Dubai Electricity and Water Resources Authority and the Office of Knowledge and Human Development. These two agencies have already processed more than 5 million transactions through a new blockchain system during the testing period.
The launch ceremony was also attended by representatives of the Future Dubai Fund, the Smart Government of Dubai and the Department of Finance.
In the near future, more agencies will be connected to the system – the Dubai Police, Road and Transport Services (RTS), the Dubai Health Authority, airports, customs, municipal authorities, the Department for Tourism and Trade, courts and banks.
In April 2018, Sheikh Mohammed bin Rashid Al Maktoum, the UAE Prime Minister and the Mayor of Dubai, announced the launch of the Blockchain Strategy 2021 project. According to the strategy, 50% of the transactions at the federal level should be transferred to the blockchain.