Dubai Announces Plans To Launch A Blockchain-Based Digital Silk Road
Dubai Chamber of Commerce and Industry, in partnership with the Dubai Future Foundation, disclosed the Digital Silk Road project, which has a goal to use blockchain technology to eradicate the cracks within the global trading system.
The Digital Silk Road project’s goal is to alter the global trading system through a secure, advanced and environmentally friendly platform using blockchain technology that helps surpass current trade barriers such as high costs, lack of transparency, diversification of legislation and lack of security in business transactions.
Dubai Customs is a key partner while the Chamber said it is also working with global partners, including entities from the Netherlands and the United States, to implement the initiative with the aim of starting the project in the next eight months.
The initiative is aimed at:
- Support entrepreneurs to be more innovative.
- Faster and more effective transactions
- Security and reduced product counterfeiting
- Make information available for all parties involved at any time anywhere
- Enhance customer experience
The platform will help to track multilateral transactions, reduce transaction time and enable digital authentication in an encrypted and secure manner. It enables devices to interact directly with each other and improves the knowledge of assets and liabilities, as well as the possibility of creating applications such as smart contracts, digital portfolios, safe digital transfer of assets and information.
Digital Silk Road is part of a broader initiative called Dubai 10X, which was launched by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. The goal of the Dubai 10X strategy is to place the city ten years ahead of the world in terms of technology adoption, innovation, and lifestyle.
Hamad Buamim, president and CEO of DCCI, commented:“The Dubai 10X approach offers a way to overcome all the challenges and current constraints facing the trade sector by introducing a unique system.” When asked about the Digital Road Plans, he said, “We have been able to develop a project that is aligned with the vision of the initiative and meets Dubai’s need for a platform that facilitates more cost-efficient, safer and faster trading. We can avoid all obstacles and unnecessary procedures and enhance our role as a trading chamber by using the latest technologies such as blockchain.”
Dubai is not the only region trying to capitalize on blockchain’s revolutionary capacity. Recently, the Chinese President Xi Jinping surprised everyone in the community when he endorsed blockchain technology.