The United Arab Emirates is considered one of the most progressive countries in the world, as their level of economic development was achieved in record time and reached great heights. But oil and gas are not all valuable tools in leading the state to progress. Cryptocurrency plays a key role in this issue. The authorities believe that digital assets will help the UAE become a leading international investment center, stimulate GDP growth and make the national economic system a platform for financing small and medium-sized businesses.
Thus, the Department of Economic Development (DED) and Dubai International Financial Center (DIFC) announced that they are ready to integrate a platform for identifying information based on blockchain technologies throughout the country. Discussions about this project began last year, and already in the first months of discussions, 120 companies joined it. At the moment, according to the financial center, 50% of all organizations in Dubai are participating on the platform.
The Department of Economic Development said that the development showed itself at a high level, as it allowed more efficient and effective exchange of verified identified information about firms between licensing authorities. So the project simplified the process of registering bank accounts for depositors and allowed banks to receive verified information about them in digital format.
Taking into account the position of the state and leadership in the field of international investment, such implementation of the blockchain made it possible to effectively attract companies to do business in one of the largest cities of the Emirate. And this, in turn, will allow distributing the novelty throughout the country.
How will this affect the country’s economic impact?
In light of these developments, the crypto industry has started to attract more and more attention and finance. Thus, the UAE Economy Minister said that in the coming years, the government wants to expand its economic influence on the world stage. And digital assets and their tokenization will help to achieve this. These tools will be the key to doubling gross domestic product.
The announcement was made at the panel of the World Economic Forum, where the leadership spoke in more detail about the prospects and potential of cryptocurrency in the field of the national economy and its regulation. The government plans to achieve GDP progress of 7% annually, in order to double the current indicators over 10 years of development and take an honorable place in the TOP-35 world leaders in this matter.
The UAE’s digital economy will be stimulated through blockchain projects. The state platform for financing small and medium-sized businesses with cryptocurrency will allow exchanging the asset at the interregional level.
In addition, it is planned to modernize the systems for regulating these processes. This will protect investors and financial institutions and give each of them a chance to use the asset, while eliminating the possibility of forming a closed chain.
How will the process be monitored? Dubai financial regulators have demonstrated a regulatory framework for regulating stock tokens. They published a document on the basics of asset control, noting the growing interest in cryptocurrency and blockchain in general. This is why they offer a comprehensive framework to interact with all stakeholders. The proposed regulation also implies the integration of a security system to protect participants and prevent money laundering. The expansion of the cryptocurrency will play a large role in the development of the UAE economy and the digital transformation of the national strategy in general. As a result, the country has taken a course of leadership and is successfully following it.