UAE Banking System to Leverage on Blockchain Tech

The United Arab Emirates Banks Federation (UBF), through its own advisory council, has reportedly had discussions about the adoption of the technology for its member banks.

UBF, which represents an organization composed of 50 member-banks, is responsible for negotiating new ventures as well as regulatory frameworks, to be able to obtain a flourishing banking ecosystem in the U.A.E.

The advisory council is convinced that Blockchain tech has the potential to improve the banking ecosystem. UBF’s chairman has even presented a study which highlights the technology’s use cases.

In the discussions, Al Ghurair states that distributed ledger technology (DLT) is “continuing to shape customer needs and expectations,” adding that the technology is one of the most important innovations for the banking system. He also thinks that implementing Blockchain-powered platforms provides banks with access to sustainable revenue streams, which can present “sustained business growth.”

U.A.E., together with various organizations, has been aggressively exploring how Blockchain can be integrated into the country in order to give the economy a boost as well as improve the quality of life in general. In April, the government has initiated “The Emirates Blockchain Strategy 2021,” a campaign that underscores Blockchain has the ability to provide various benefits while reducing effort, resources, and time needed for transactions.

The strategy plans to use Blockchain tech in executing 50 percent of government transactions by 2021, as indicated by a number of statistics. With the strategy’s full implementation, the government is hoping to save $3 billion and 77 million work hours annually.

In addition to government-supported incentives, other Blockchain initiatives are already underway for the technology’s full adoption. If the UBF negotiations prove to be successful, Blockchain will also become part of the banking ecosystem.