Developed in collaboration with the Dubai Department of Finance, Smart Dubai Office (SDO) has launched a blockchain-based ‘payment reconciliation and settlement’ system that will enable real-time payment processing, expediting government transactions, according to a press release.
Yesterday, the SDO launched a ‘payment reconciliation and settlement’ system, in collaboration with the Dubai Department of Finance, upgrading its financial system to allow for quick payment processing.
Accurate and real-time transactions
The new system utilises blockchain technology, allowing the Dubai Department of Finance to perform transactions accurately and in real time, in a bid to create economic efficiency with minimal effort. Currently, the department relies on its staff to physically go through all the collected payments across all portals and settle them manually. Fees are then deducted from the total amount and the remaining funds are transferred to the relevant authority. The entire process is time-consuming and can take up to 45 days to complete.
Notable names attended the launch
The launch of this blockchain-based payment system saw big names in the government and businesses sector attend the event. Some of the notable names in attendance included the Director General of Smart Dubai Office, the Director General of the Department of Finance in Dubai, the CEO of the Smart Dubai Government Establishment (SDG), and the Managing Director and CEO of the Dubai Electricity and Water Authority.
Speaking on the innovative technology and its integration to payment system, Dr. Aisha Bint Butti, Director General of the Smart Dubai Office said that:
Smart technologies continue to infiltrate every aspect of human life and societies; virtually everything we do today relies fully or to some degree on an advanced technology once considered ‘disruptive… Guided by the forward-thinking vision of its leadership, Dubai has long been a trailblazer in embracing avant-garde technologies – most notably those of the Fourth Industrial Revolution – and tailoring them to meet the needs of our citizens, residents and visitors, in a bid to transform Dubai into the happiest and smartest city in the world.
Ensuring the success of the ‘Payment Reconciliation and Settlement’ system requires fostering collaboration and synergy among the various Government entities that have joined – or are planning to join – the system, considering that it calls for each entity to open its data and work hand-in-hand with other departments from across the Government spectrum.
Wesam Lootah on Smart Dubai’s adoption of blockchain technology
Wesam Lootah, CEO of the Smart Dubai Government Establishment, spoke about the potential for growth in the cryptocurrency and blockchain technology market:
We, at Smart Dubai, consider technology to be a means for us to help improve people’s quality of life and spread happiness among them. Correctly applied across various key sectors, we believe Blockchain has massive potential to achieve our emirate’s ambitions for a fully-fledged smart transformation. In 2018 alone, investment in this game-changing technology surpassed that of all the previous years combined, and analysts project the global blockchain market to be worth $290 billion by 2019
More government entities to join the blockchain payment System
The first government entities to join the system were the Knowledge and Human Development Authority (KHDA) and the Dubai Electricity and Water Authority (DEWA). The two have already processed a total of over 5 million transactions through the blockchain-powered system.
More government entities looking to follow suit include: Dubai Holding, Roads and Transport Authority (RTA), Dubai Airports, Department of Tourism and Commerce Marketing (DTCM), Dubai Municipality, Dubai Courts, Dubai Customs, Dubai Health Authority (DHA), and Dubai Police, among other local government bodies as well as prominent financial service providers and banks