Word came yesterday that Dubai is on the path to become the first major city in the world to create its own cryptocurrency, called emCash.
The announcement came from news outlet Arabian Business, which quoted a top Dubai official as acknowledging the creation. Seeing the benefits of cryptocurrencies in its efforts to makes its economy “smart,” Dubai government officials see cryptos as key. Instead of just setting the parameters for the acceptance of the dozens of digital currencies out there now, the city decided to join them.
There are a multitude of reasons Dubai is moving toward creating its own crypto. In addition to becoming a “smart” economy, Ali Ibrahim, the city’s deputy director general Economy, said creating emCash:
gives financial identities to contactless transactions
lets the world know that it recognizes the value of cryptos in being competitive
enhances “customer happiness
The emCash crypto will have all the hallmarks of other cryptocurrencies. Blockchain will be the underlying technology, and there will be a wallet called emPay. The wallet, of course, will allow merchants to receive payments without the burden of using intermediaries.
Security is clearly one of the most important hallmarks of cryptocurrencies. emCash is being touted as a way to reduce fraud. Also, officials told news outlets that they see emCash as improving inflation levels because it is issued in real time based on actual demand.
Ali Ibrahim, deputy director general of Dubai Economy, said:
"A digital currency has varied advantages faster processing, improved delivery time, and less complexity and cost. 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 the ease of business and quality of life.”
Dubai residents will be able to spend emCash as they do dirham, which is the currency in the United Arab Emirates. Ibrahim specified that everything from daily coffee runs, to monthly utility bills can be paid for with emCash. They’ll be able to make their payments through their smartphones, too.
The crypto is being made possible through a partnership with Object Tech as part of the Dubai Economy Accelerators program. Officials have noted that approval of other UAE authorities will be considered if required. A company called Emcredit will support the system.