20 April 2017

Dubai announced this week it has signed a Memorandum of Understanding (MOU) with Avanaza Solutions IT company to move ahead with plans to implement a citywide blockchain-based payments platform, according to a press release issued by the firm.

The deal was signed by Aisha Butti bin Bishr, the director general of the Smart Dubai Office, a government body in charge of implementing innovations and new technologies in the city, and will allow around 38 governmental entities to process instant payments and reconciliations through Avanaza’s special Cipher platform. The blockchain technology is a decentralised digital ledger that facilitates secure online transactions.

The Smart Dubai office announced last month a partnership with the American-based IBM and Consensys company to help it implement the blockchain technology in the emirate, according to Gulf News.

The blockchain technology could help the world’s biggest investment banks cut their infrastructure costs by $8 to $12 billion a year by 2025, Reuters reported in January.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai’s crown prince and the chairman of the emirate’s executive council, said on Sunday the Dubai government will issue its last paper transaction by year 2021.

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© Express 2017