The United Arab Emirates recently made history by releasing the first-ever governmental cryptocurrency, emCash.
The local Dubai government recently confirmed the launch of the world’s very first state-sponsored cryptocurrency. The digital tokens, emCash, will be made available to all citizens of the United Arab Emirates (UAE). The tokens can be used to pay for all services, governmental as well as non-governmental.
Since the start of cryptocurrencies, and most notably after bitcoin’s massive success, governments across the globe have increasingly looked towards cryptocurrencies as a viable economic system to implement into local financial ecosystems. However, Dubai managed to be the first to do so successfully.
Ali Ibrahim, deputy director general of Dubai Economy, has stated that emCash tokens will enjoy full legal tender status for all governmental and nongovernmental services. Citizens will be able to use emCash tokens for anything from buying coffee, to paying their children’s school fees, to utility bills, money transfers, and much more.
According to Ibrahim, Dubai chose to embrace cryptocurrencies because of the increased flexibility, convenience, and security that blockchain technology offers. Dubai has held a positive position on blockchain technology since its inception, and several government officials have stated that blockchain technology has the power to cause a paradigm shift in our current financial technology landscape. The bold move of incorporating emCash makes Dubai one of the most progressive financial technology countries in the world.
According to Ibrahim, Dubai is the perfect place to do business, as the city has the right combination of fast-paced environment and innovative financial technology. Ibrahim stated that this latest endeavor is indicative of Dubai's immense ambition and will be valuable in creating a brand new economic ecosystem. Dubai managed to make all transactions faster, cheaper, and more importantly, safer for all businesses, individuals, and governmental agencies by embracing blockchain technologies.
Dubai has made no secret of their goal of being the fintech hub for the east, if not the world. The government has set several contracts and policies in place to achieve this. The Dubai government recently signed contracts which allowed for Bitcoin payments to be viable when purchasing a property.
According to Futurism, emCash came as a result of a collaboration between a subsidiary of Dubai’s economy department, Emcredit Limited, and the UK-based company, Object Tech Group. Ibrahim noted the various benefits of adopting a cryptocurrency by stating that the currency has faster processing times, transactions are less complex and costly, and it protects users’ information more efficiently. Ibrahim is convinced that employing digital currencies will change the way business is conducted, and make the everyday lives of Dubai citizens a lot more convenient.
Whether or not other countries will follow Dubai’s example may largely depend on emCash’s success. Many consider Dubai to be a test run of the potential that cryptocurrency has to offer.