Cryptocurrencies are the next big thing and just reached a new level in Dubai, UAE.
According to a Tuesday press release, the country’s residents will now be able to pay for a host of goods and services using a digital currency called – emcash.
This innovation is made possible by a partnership deal between emcredit, a subsidiary of the Dubai Department of Economic Development, blockchain payment provider Pundi X, and its partner Ebooc Fintech & Loyalty Labs LLC.
New POS systems have been created for and they will start hitting the streets of Dubai following the announcement.
Fintech company Ebooc will design the POS terminals for consumers while Pundi X will focus on making 100,000 units of such terminals available within the next three years.
Emcredit’s digital currency – emcash is a stablecoin pegged to Dubai’s native currency, the UAE dirham (AED). This attribute means that users will have to worry less about coin volatility and this is likely a strong reason for the mainstream adoption of the cryptocurrency.
In Dubai, goods and services that can be paid for using emcash will include government utilities, telecommunication, and school fees.
Emcash Launch – A Landmark Moment For Dubai, Blockchain, and Cryptocurrencies
Even though most developments around the blockchain and crypto industry has come from Asia and Malta, the UAE city of Dubai has achieved a great feat with the latest announcement.
This was expressed with gratitude by an Emcredit spokesperson who spoke in the press release.
“To be the world’s first city to offer blockchain-based payment solutions to our residents is an exciting moment for Dubai. It confirms Dubai’s status as an international tech hub”.
Abdalla Al Shamsi, CEO DFP and Co-Founder ebooc went further to describe ‘emcash’ as the ‘world’s 1st first digital currency’.
“We also envisage consumers in Dubai being able to make real-time payments using Dubai’s digital currency for all their payment needs,” he said.
Understandably, the ‘emcash’ is not the first state-backed digital currency in the world since countries such as Venezuela and Senegal have launched their own cryptocurrencies in the past.
The unique attribute, though, is that the ‘emcash’ is expected to be used mainly for mainstream transactions and for this reason, it could record a better success rate than its counterparts.
What are your thoughts?
Would you happily pay for a service using a state-backed digital currency?