Dubai is moving into the world of digital currencies. The city is planning to launch the so-called ‘Emcash.’ In order to create it, the state-backed firm Emcredit will be working on the project.
Dubai Moves Toward Digital Currencies
Dubai has several times show that it wants to be a leading city in terms of technological innovation. This is why it will soon have its own digital currency powered by the local company emcredit. The digital currency will be used to pay school fees, in-store purchases, utility bills and more. As it can be seen, the main intention behind it is to change the way payments are processed.
Emcredit, the company behind this currency, is working with the Dubai Department of Economic Development.
A spokesperson related to the entity explained that Dubai would be the first city in the world to offer blockchain payment solutions to its residents.
On the matter, the spokesperson commented:
“To be the world’s first city to offer blockchain-based payment solutions to our residents is an exciting moment for Dubai. It confirms Dubai’s status as an international tech hub. Deploying cutting-edge technology such as blockchain is a key priority and is delivering benefits to our citizens in the form of convenience and securities to customers and merchants across Dubai.”
The blockchain firm Pundi X has also participated in the project. So as to help facilitate a gradual transition to using Emcash, the company has decided to create a point of sale device (POS). This device is known as Pundi X POS and will be issuing over 100,000 units in the next years.
Emcash is currently waiting for government approval and is continuously being tested. Regulators have to analyse better how to regulate it as well. However, it could possibly be launched in the coming months.
Furthermore, the digital currency will be pegged to the UA dirham. The local currency of Dubai will work as a hedge against volatility in the crypto market. Additionally, it will provide users with a fast and cheap way to process transactions.
Pundi X’s CEO, Zac Cheah, commented on the matter explaining that this digital currency represents an important development for blockchain technology. He added that it will mark a ‘historic moment for the real-world application’ of distributed ledger technology.
There are other countries that decided to work on their own crypto projects. Venezuela, for example, has launched a national cryptocurrency known as Petro. It is backed by gold, diamond and oil reserves from the country.
Ukraine is another country that is analyzing the possibility to issue a digital currency in the future. The e-Hrivnia could be used to reduce cash in the economy and improve payment services.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.