The anticipation of stablecoins in the UAE continues to increase – along with the number of transactions they are expected to transform.
On Monday, Abu Dhabi entities IHC, ADQ and First Abu Dhabi Bank announced plans to launch a dirham-backed stablecoin, which will be fully regulated by the UAE Central Bank, aimed at easing payment solutions and further doubling down on the use of the digital asset.
We have already established what we can expect with the arrival of stablecoins in the UAE. On the other hand, the underlying programming – from all aspects, technicalities to oversight – to make it work is interesting on its own.
Game-changing 'smart' programming
Stablecoins would be able to make smart contracts – also known as programmable money – even smarter as they can execute payments in stages when certain conditions are met.
FAB last September announced it was the first financial institution to complete a programmable payment pilot with JPM Coin, developed by a unit of US bank JP Morgan.
A smart contract can be programmed to auto-trigger cash token payouts for insurance claims, utility bill payments, corporate actions, dividend payouts and other transactions, said Ronit Ghose, global head of future of finance at the Citi Institute.
Though theoretical at the moment, this can be done by properly “embedding conditions “as logic or a code into the payment leg to efficiently execute payments when certain predefined conditions are met”, he told The National.
As a result, “programmable money will likely [make] money smarter and finance hyper efficient”, he said.
This will eliminate – as with cryptocurrencies in general – traditional systems, people or intermediaries needed to confirm, approve, or process payments. It would also reduce counterparty risk, in addition to enabling traceability that fosters better trust between parties, protection against fraud and fewer disputes, said Arun John, chief market analyst at Dubai-based Century Financial.
“This technology is a game-changer … since everything is automated, there’s no need for people to manually check things or for middlemen to get involved. That means fewer mistakes and fewer delays,” he told The National.
In supply chains, for example, smart contracts make sure that money is only paid when every part of the deal is completed, so there is less risk of fraud or arguments. In corporate finance, it helps keep track of money in real time, making it easier to avoid errors and stay transparent about where the money is going.
“We view this as a foundational milestone – one that strengthens liquidity, enhances transparency and advances cross-border interoperability across the Web3 ecosystem,” Shunyet Jan, head of institutional and derivatives at Dubai-based crypto exchange Bybit, told The National.
Regulation and accountability
Being a piece of code, regulating smart contracts is not straightforward. Typically, regulators tend to adopt a functional approach, regulating instead the outcomes or the activities enabled by such smart contracts.
That said, accountability is not entirely out of reach, especially as the space gradually matures and rules are drawn up.
“We’ll likely see a blend of technical standards and regulatory approaches specially around areas like smart contract audits, transparency tools, and compliance frameworks for the platforms using them,” Arushi Goel, policy lead for the Middle East and Africa at blockchain company Chainalysis, told The National.
While indeed money will continue to be regulated by national financial and fiduciary authorities, including central banks, issuers of stablecoins should and must be subject to global and local laws and guidance.
These include those around know your customer, consumer protection, safety and soundness, and, perhaps arguably the most important, anti-money laundering.
“Policymakers of certain jurisdictions anticipate a looming threat stemming from privately issued money tokens and will likely want to continue sovereign control over money,” Mr Ghose said.
In addition, regulators should find it “relatively easy to hold players accountable because all transactions [including user identities] will be publicly recorded on a blockchain”, Anna Zeitlin, a partner for FinTech and financial services at international law company Addleshaw Goddard, told The National.
What about rents, BNPL and business contracts?
Although stablecoins are pegged to a traditional fiat currency or commodity, they do not require extensive paperwork, approvals and physical branches.
On the other hand, stablecoins would only require an internet connection, a digital wallet and proof of identity.
This system disruption could entirely change how we transact, ranging from remittances, rent cheques, buy-now-pay-later schemes, ethical retail investments and even business contracts.
Rent cheques and other day-to-day expenses are also expected to be vastly affected as blockchain-powered stablecoins will eliminate days-long processing and reduce fees significantly.
BNPL providers, meanwhile, would now start lending through stablecoins, and as the system is now built on blockchain, they could now tokenise those loans and make them available for investors much cheaper and more efficiently, Mr John said.
For investments and business contracts, stablecoins would offer a less volatile exposure to cryptocurrencies while enabling transactions. According to New York-based Chainalysis, 93 per cent of stablecoin transfers in the UAE are retail-sized, portraying the heightened adoption among retail participants.
“Stablecoin payments will allow instantaneous and very cheap payments. This will be beneficial to consumers and will also speed up the business of companies using them,” Ms Zeitlin said.
The key question though is how long it will take for all this to be realised. It can take anywhere between a few to several years, depending on the complexity of use cases – and how artificial intelligence and blockchain further advance.
"Maybe five to 10 years, according to how AI [development] grows," Ryan Chow, chief executive of Solv Protocol, told The National.
"But if you only take a look at some very specific use case, like something very common [such as buying coffee], two or three years are enough [for a] much more convenient, efficient and transparent way to pay for a lot of things."
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Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
Poland Statement
All people fleeing from Ukraine before the armed conflict are allowed to enter Poland. Our country shelters every person whose life is in danger - regardless of their nationality.
The dominant group of refugees in Poland are citizens of Ukraine, but among the people checked by the Border Guard are also citizens of the USA, Nigeria, India, Georgia and other countries.
All persons admitted to Poland are verified by the Border Guard. In relation to those who are in doubt, e.g. do not have documents, Border Guard officers apply appropriate checking procedures.
No person who has received refuge in Poland will be sent back to a country torn by war.
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Killing of Qassem Suleimani
Tamkeen's offering
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
AS IT STANDS IN POOL A
1. Japan - Played 3, Won 3, Points 14
2. Ireland - Played 3, Won 2, Lost 1, Points 11
3. Scotland - Played 2, Won 1, Lost 1, Points 5
Remaining fixtures
Scotland v Russia – Wednesday, 11.15am
Ireland v Samoa – Saturday, 2.45pm
Japan v Scotland – Sunday, 2.45pm
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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Springsteen: Deliver Me from Nowhere
Director: Scott Cooper
Starring: Jeremy Allen White, Odessa Young, Jeremy Strong
Rating: 4/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
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List of alleged parties
May 15 2020: PM and Carrie attend 'work meeting' with at
least 17 staff members
May 20 2020: PM and Carrie attend 'bring your own booze'
party
Nov 27 2020: PM gives speech at leaving do for his staff
Dec 10 2020: Staff party held by then-education secretary
Gavin Williamson
Dec 13 2020: PM and Carrie throw a flat party
Dec 14 2020: London mayor candidate Shaun Bailey holds staff party at Conservative
Party headquarters
Dec 15 2020: PM takes part in a staff quiz
Dec 18 2020: Downing Street Christmas party
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
