The prowess of blockchain technology cannot be overemphasized in its application in several industries. Since its inception, various firms have adopted the technology, with the most recent adoption of the tech coming from government institutions.
In what could be considered as the latest round of government adoption of the blockchain tech, the United Arab Emirates (UAE) is currently utilizing the tech to develop more than 30 projects.
UAE made this known in a PwC whitepaper dubbed ‘Establishing Blockchain Policy’ published earlier this month. The whitepaper sought to examine the possible use cases and the application of the blockchain tech to a limited geographical region, including the UAE, Malta, United States, among others.
The PwC whitepaper revealed that the UAE government is planning to utilize blockchain in 50 percent of its operation before the end of 2021.
The study found that the projects would be undertaken under the umbrella of Smart Dubai, a technology-focused initiative designed to promote technology adoption by government authorities in Dubai. As part of that effort, the state-backed initiative recently launched a Blockchain as a Service (BaaS) platform to host government use cases of the blockchain tech.
Meanwhile, the whitepaper went further to recommend that all government entities in the country establish channels that would enable the integration of the public and the private sectors, as well as the current government services with the blockchain tech.
Blockchain and Crypto Regulation in the UAE
Notably, the whitepaper revealed that the country’s financial regulatory watchdog, Abu Dhabi Global Markets Financial Services Regulatory Authority (ADGM FSRA), had established regulations for cryptocurrency, to create a safer atmosphere for crypto-related transactions.
Also, financial regulators, especially the Central bank of the UAE (CBUAE), reiterated its stance that cryptocurrencies should not be regarded as legal tender and as such, cannot be used in a commercial transaction context.
Regardless of the benefits that come with the blockchain tech, the report did not fail to acknowledge that the benefits are accompanied by various problems, including lack of maturity, performance, interoperability, and low adoption rates.
However, PwC suggested three approaches to tackle these problems, including the use of various engineering tools, good governance, and standard.
Coinfomania reported in February that banks in the UAE and Saudi Arabia indicated interest in establishing a cross-border digital currency transaction project, which would facilitate transactions between both countries.