Reducing paper transactions should be the focus of banks in Dubai before adopting Blockchain technology and cryptocurrencies, experts have said.
The emerging technology was discussed along with the predicted impact of cryptocurrencies by a Smart Dubai panel hosted by Xische & Co, a collective examining change in future innovation and culture.
While the private sector retains a certain fear factor towards Blockchain and cryptocurrencies, more transactions completed via the technology are inevitable as the financial sector evolves, panellists said.
Read more: Bank initiative seeking to remove Dh65.4 billion in cash from UAE streets
“This technology will help us to make huge savings in time and resources, but the conversation now should be about going digital first, rather than just about adopting Blockchain,” said Wesam Lootah, CEO of Smart Dubai, a government backed initiative to unite the private sector with public bodies.
“Many transactions still require paper in Dubai, so bringing in this kind of technology has huge potential.”
Adopting a paperless system without the need for chequebooks, before Blockchain and cryptocurrencies are adopted, should be the primary focus of the banking sector Smart Dubai officials said.
Although many businesses still accept cheques, other countries have phased out the payment form by making it an expensive process and charging as much as 25 Euros (Dh114) to cash a cheque.
Blockchain is the undergirding technology on which the Bitcoin system operates, is tamper proof and adds a layer of security across a wide network of connected machines.
The secure technology enhances trust among participants on the network, which is an attractive option for banking institutions and customers.
“Whether we like it or not, and whether the banks like it or not, Blockchain technology and cryptocurrencies are here, and they are here to stay,” said Ali Sajwani, founder and CEO of Grape Technology.
“Dubai will be ahead of the rest when developing the control and regulation of this area.”
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Since 2011, an estimated US$120 billion (Dh440 bn) has been transferred via Blockchain.
In 2016, IBM issued a report predicting that 15 per cent of global banks would implement Blockchain technology by the end of 2017, and that 66 per cent of banks would have Blockchain operations in commercial productions and at scale by 2020.
“Cryptocurrency is like a train that is running very fast and is not going to stop at any station,” said Younus Al Nasser, Assistant Director General of Smart Dubai.
“We do not know where it will go, but there is a need to jump on board.”
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
MATCH INFO
Uefa Nations League
League A, Group 4
Spain v England, 10.45pm (UAE)
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
Mumbai Indians 213/6 (20 ov)
Royal Challengers Bangalore 167/8 (20 ov)
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The biog
Name: Younis Al Balooshi
Nationality: Emirati
Education: Doctorate degree in forensic medicine at the University of Bonn
Hobbies: Drawing and reading books about graphic design
The specs
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Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
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THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Sweet%20Tooth
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UAE currency: the story behind the money in your pockets
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What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
COMPANY%20PROFILE
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Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
6. Ensure availability and sustainable management of water and sanitation for all
7. Ensure access to affordable, reliable, sustainable and modern energy for all
8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
12. Ensure sustainable consumption and production patterns
13. Take urgent action to combat climate change and its effects
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
ETFs explained
Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.
ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.
There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.
