2018 will be the year for cryptocurrency in UAE

Viktoria Holubniuk Blog February 19, 2018 | 0

It’s interesting how Bitcoin has risen in market value and stature. It has recently hit the $19,o00 mark, and is currently trading in futures. Remarkable.

As predicted with the below article, 2018 will be the year of crypto in the UAE and the world at large.

Read on.

Has the UAE entered the cryptocurrency market yet? Yes and no.

What’s for sure is that cryptocurrencies are a rising star aiming to rival classical monetary systems and a growing threat to printed currency.

In 2009, when Bit Coin made its way into the information superhighway, its value was around $0.00075. Where is it today? Try $2,500. According to Futurism.com, a site dedicated to future technologies and developments, the total market cap for all cryptocurrencies was slightly higher than $25 billion as of April 1, but 60 days later the cap exceeded $100 billion.

Dubai launches blockchain-based cryptocurrency.

On September 26 Dubai’s government’s economic website announced it had established a partnership to facilitate financial transactions through contactless payment.

“The partnership brings Emcredit, a subsidiary of Dubai Economy, and the UK-based Object Tech Grp Ltd together under the Dubai Economy Accelerators umbrella to develop and implement emCash, an encrypted digital currency, which people can use to pay for various government and non-government services,” it said.

“emCash will be the digital currency in emPay wallet, launched by Emcredit to support contactless payments. emPay allows UAE residents to make varied payments, from their daily coffee and children’s school fee to utility charges and money transfers, through the near field communication (NFC) option in their phones,” the statement added.

The statement said that with emCash, emPay users will benefit from secure digital currency and merchants will circumvent intermediaries and receive immediate payments in real time.

Ali Ibrahim, Deputy Director General of Dubai Economy, said emCash would accelerate Dubai’s evolution into a smart economy.

“A digital currency has varied advantages – faster processing, improved delivery time, less complexity and cost, to name a few. It will change the way people live and do business in Dubai, and mark a giant leap for the city in harnessing game-changing innovations to improve ease of business and quality of life.”

e-wallet already in place

Emirates Digital Wallet (EDW), a platform established by 16 of the UAE’s leading banks, has announced “klip”, a vigorously market tested app that will help to replace physical cash in the pockets of UAE residents.

EDW said klip paves the way for cashless spending, transfer and storage of money for everyone living and working in the UAE.

It uniquely combines the adaptability and utility of smartphones with the familiarity of using cash in everyday purchases and payments.

Maki Vekinis, General Manager of the Emirates Digital Wallet, says: “This is not a new payments solution. It is a movement to create a cashless society where everyone wins – consumers at all levels, small and large businesses, banks, as well as the government. As a brand, klip promises to change everybody’s daily lives.”

The Chairman of the UAE Banks Federation, HE Abdulaziz Al Ghurair, said, “The launch of Emirates Digital Wallet .. has the potential to introduce a society-wide cash transformation to digital. It will provide a strong boost to the UAE’s effort to build an inclusive digital payments ecosystem that will benefit all stakeholders including consumers, businesses and banks, and set the path for the country’s transition to a cashless future”.

Certain aspects not quite ready

In mid September the Dubai Financial Services Authority cautioned that Initial Coin Offerings (ICOs) were not regulated and that no licenses are currently offered to firms within the Dubai International Financial Centre and as such warned prospectors about the dangers of rushing into this.