Dubai Government Launches a New Blockchain-based Payments System Under Its Smart Dubai Initiative

25. Sep 2018 Posted by Akolkar B on News

The Smart Dubai Office (SDO) and the Dubai Department of Finance (DoF) launched a blockchain-powered payment system called “Payment Reconciliation and Settlement.”

The official press release labels this new payment system as a “blockchain-powered upgrade to its financial system’(Dubaipay)’.” The new blockchain-powered system aims at introducing further transparency and efficiency into the DoF’s processes.

The existing DoF process requires staff members to physically go through all the payments collected from different portals, and further reconcile them and settle them manually. It further requires deducting the fees of the DoF and transferring the remaining balance to the relevant authority. This entire process takes 45 days in all to complete.

The new blockchain-payment payment system will help to economize the effort and time in this entire process while enabling reconciliation and settlement transactions in real-time.Dr. Aisha Bint Butti Bin Bishr, director-general of the Smart Dubai initiative said: “Ensuring the success of the ‘Payment Reconciliation and Settlement’ system requires fostering collaboration and synergy among the various Government entities that have joined – or are planning to join – the system, considering that it calls for each entity to open its data and work hand-in-hand with other departments from across the Government spectrum.”

The new blockchain-powered payment system is currently used by by the Dubai Electricity and Water Authority (DEWA) and the Knowledge and Human Development Authority (KHDA). These two agencies were the first to join this blockchain payments platform and has processed over 5 million transactions over the decentralised ledger.

A number of other government agencies like Dubai customs, Dubai Police, Dubai Airports, Dubai Municipality, the Roads and Transport Authority are expected to join this blockchain platform.

Smart Dubai Government Establishment (SDG) chief executive Wesam Lootah said: “We, at Smart Dubai, consider technology to be a means for us to help improve people’s quality of life and spread happiness among them. Correctly applied across various key sectors, we believe Blockchain has massive potential to achieve our emirate’s ambitions for a fully-fledged smart transformation.”

Dubai has very actively participated in the changing global technological scenario by adopting blockchain technology for different use cases. Earlier this year in April, Dubai’s Department of Tourism and Commerce Marketing (DTCM) launched the blockchain-powered marketplace Tourism 2.0 to promote itself as a travel destination.

Later in July 2018, the Dubai International Financial Centre (DIFC) Courts launched "Court of the Blockchain” initiative to streamline all the legal operations in the country.