Dubai Premieres Blockchain Payment Reconciliation and Settlement for UAE
Mass adoption for blockchain technology may be closer than some within the community predict. Although the trend is for blockchain tech to become first integrated into existing financial systems, the past three years have yielded several important use cases for blockchain technology in a variety of different sectors—not all of them financial in nature. Perhaps the integration most important to the eventual mass adoption of cryptocurrency technology, though, is the use of the tech in the public sector for governmental purposes.
When a government begins to use a technology like blockchain, the perceptive benefit for the industry is significant to say the least. For a sector seriously lacking in community and investor interest and faith in the past couple years, it is important that the crypto space gain access to the kind of industrious legitimacy that only a governmental support can lend to it. In this light, recent actions by the government of Dubai are a major boon to the blockchain industry, and to the overall cryptocurrency community.
The country has recently announced the launch of a new platform named the “Payment Reconciliation and Settlement.” The platform is based in blockchain technology, and is poised to help to provide a better sense of accuracy and transparency to the process of payment reconciliation. Though the applications will vary, the target entities within Dubai are generally governmental in nature, including Dubai Police, the Roads and Transport Authority (RTA), and the Dubai Health Authority (DHA).
Already in Pilot
The new blockchain system is already being used by two unique governmental authorities. According to the country, both the Knowledge and Human Development Authority, or the KHDA, and the Dubai Electricity and water Authority, DEWA, are using the new system to try to innovate and expedite their own payment processes. Testing has already been relatively extensive, and experts posit that it could be a good sign for the system. Data is being collected now on over five million unique transactions that have been conducted on the network since its inception.
A Pervasive Governmental Issue
This blockchain technology is part of a bigger governmental prerogative to respond to one of the biggest issues in the public sector—inefficiency. According to local news site in Dubai, it can take somewhere near 45 days for a government transaction to be completed. This spells big trouble for agencies like the Dubai Police Department, who often need to be able to process payments as quickly and as effectively as they possibly can.
The team behind the project has already won major support from entities all over the world. At the Smart Cities Expo in Barcelona, the group of developers behind the public project were awarded the “City Project Award,” a gift awarded to companies who have best used blockchain technology to contribute to the public good.
Since then, the project won the vocal support of both the Prime Minister of the United Arab Emerites and the Ruler of the Dubai district.