Dubai, a global trade hub, has expressed its plans to incorporate the blockchain technology in the economic life of the city. Some of world`s large
Dubai, a global trade hub, has expressed its plans to incorporate the blockchain technology in the economic life of the city.
Some of world`s largest companies like IBM, Microsoft and a number of banks have started to look into the possible application of the blockchain technology.
Dubai points out to the appearing blockchain-based businesses in its territory. It is said that business activity in Dubai can become easier, if the blockchain technology is more widely used, as the media report speculated.
While speaking to the Wall Street Journal (wsj.com), Aisha Bin Bishr, director general of Smart Dubai, a government office tasked with facilitating innovation in the emirate, said:
“We want to make Dubai the first blockchain-powered government in the world by 2020. It is disruptive for existing systems, but will help us prepare for the future.”
However, it is reportedly noted that shifting to the new technology may be quite costly. In addition, there are other possible difficulties like integrating the technology with existing systems.
Still, the advantages of the technology are attractive to institutions and businesses in Dubai. The city is notably the first one to support the technology on a government level.
Several Dubai entities are trying out the blockchain technology. For example, the Department for Economic Development, a government agency that facilitates the setting up of businesses and promotes trade in Dubai, considers shifting its entire business registration and licensing services to blockchain.
“We want to transfer existing data to blockchain as well as create a system for new information.”, as Mohammed Shael Al Saadi, the department’s chief executive for corporate strategy, explained.
“This data would be available to other Dubai entities, cutting down on duplication and easing and accelerating the process to set up businesses in Dubai.”, he added further.
It remains to be seen how the the city of Dubai will put its plans into practice.