Dubai Launches Blockchain-Powered ‘Payment Reconciliation and Settlement’ System

Dubai, a blockchain friendly city, has launched a “Payment Reconciliation and Settlement” system for use within the emirate’s Department of Finance. The system will bring efficiencies of time and effort by enabling real-time and error-free financial transactions.

Smart Dubai

Dubai is a major trading hub in the MENA (Middle East and North Africa) region. As part of its Smart Dubai initiative, the Smart Dubai Office (SDO), in collaboration with the Dubai Department of Finance, has launched a blockchain-powered system for reconciliation and settlement of payments. The announcement was made by SDO through a press release earlier on Sunday. The Smart Dubai initiative is an ambitious project with the goal of making Dubai the happiest city on the globe.

The new system will replace the currently followed practice of manual reconciliation of accounts which apparently takes up to 45 days. Using the upgraded solution will not only bring efficiencies but will also minimize errors. The launch ceremony was attended by Dr. Aisha Bint Butti Bin Bishr, Director General of the Smart Dubai Office and heads of various government departments. According to Dr. Aisha:

Blockchain is one of the most promising of these technologies, attracting more investments every year.

Dr. Aisha added:

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.

Dubai Blockchain Strategy

Dubai has long been at the forefront of the adoption of new technologies, launching its e-governance initiative way back in 1999 when the global internet penetration was still quite low. The city, keeping up with this trend, is among the early adopters of blockchain technology. The SDO along with the Dubai Future Foundation (DFF) spearheads the Dubai Blockchain Strategy with the goal of exploring latest technology innovations to create a safe, efficient, seamless and impactful experience for its residents and visitors.

Adopting blockchain technology will result in saving to the tune of 5.5 Billion Dirhams in document processing alone as per claims made by SDO. As per the organization’s official website, a blueprint has been created based on a current-state analysis carried out with participation from all government run departments.

Dubai has been successful in creating a blockchain and cryptocurrency eco-system with many companies and projects setting up shop in the desert city. The city is also home to the Global Blockchain Council (spearheaded by DFF) which includes 42 government bodies and private entities as its members.

With this launch, Dubai has taken a big leap towards its ambitious plan to become the world’s first blockchain-powered government, a smart city, and a global technology leader.

Do you think that Dubai’s initiative to adopt blockchain for governance will encourage governments across the world to embrace the technology? Let us know in the comments below.

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