Blockchain introduction is soon in the UAE
The Ministry of Finance of the United Arab Emirates will consider the introduction of the blockchain at the Seventh World Government Summit. The office of the Arab country will hold on this topic two stages of private consultations at once, where the main financial trends of the planet will be considered, including the integration of Blockchain technology and cryptocurrency, as well as the development of economic conditions under which both of these technologies will be effective. In addition, members of the meeting will discuss the regulation of electronic money and tokens, as well as the development of small and medium businesses.
The UAE discusses blockchain introduction
In addition, the Ministry of Finance of the UAE intends to enter into negotiations with the IMF. The topic of the meeting will be the question of how development funds can influence the global economic situation when investing in the digital sphere. The World Bank will take part in the discussion on financial policy management.
The Arab Emirates launched several programs whose goal is to integrate blockchain and start using cryptocurrencies in the state as a whole. Therefore, in January, the UAE and Saudi Arabia decided to create their own cryptocurrency Aber. They intend to use it only in the banking sector as the experimental currency for understanding of possibilities of blockchain various areas and for how it can simplify international payments.
However, literally in a few weeks, the Monetary Authority of Saudi Arabia and the Central Bank of the United Arab Emirates made clarifications: the use of the new cryptocurrency will occur using blockchain “on a trial basis” so that only selected banks can familiarize themselves with this technology.
In addition, at the end of 2018, the local Securities and Exchange Commodity Authority (SCA) promised to develop and approve new ICO rules by mid-2019.
The head of the department noted that the regulator had already approved all the necessary agreements with law firms to create a sandbox and develop its own rules for entering the ICO. There are also hints of speedy and completely loyal regulation of cryptocurrency exchanges in the country, which can make the UAE a new paradise for lovers of cryptocurrency. Analysts are convinced that the UAE can follow the path of Gibraltar or Malta, and attract business, which has recently become difficult to work in the field of cryptocurrency, given the tightening rules in developed countries.
According to the head of the investment Libra Project, the UAE has excellent positioning from the point of view of the ICO sector. A country can attract many cryptocurrency startups, which, in turn, will contribute to the economy.
The representative of the London-based fund management company Eterna Capital also sees the UAE’s leading positions and the country’s great potential in modernizing the financial industry through new projects that will attract loyal conditions.
At the same time, all experts agree that in the UAE it is necessary to stimulate the emergence of its own blockchain experts and developers, as well as investors, in order to ensure stable growth in this subject in the country.
New bills regarding blockchain implementation and ICO market regulation will be presented soon. It is likely that the regulator will work with Dubai and Abu-Dhabi to create its own crypto-exchange.