The ‘internet of money’ and digital currencies are offering more and more opportunities for investors and consumers to free themselves from physical currency. The innovative city of Dubai is paying attention to this trend and is issuing its very own cryptocurrency: emCash.
Dubai’s First Official State Cryptocurrency is a form of encrypted money that will allow Emirati residents to pay for products and services as if they were using hard cash. Dubai is now preparing the infrastructure for the new currency and has already officially launched it.
Users of this new digital coinage will be able to use it through a secure app, the emWallet, for transactions that will not require identification and will be completed in real time.
The system is blockchain-based for safety and anybody will be able to use it to pay for all the things they are currently able to pay with dirhams if they so choose. They will also be able to pay for government services.
‘With emCash, emPay users will have the option of a secure digital currency, and merchants receive such payments in real time without going through intermediaries,’ Ali Ibrahim, deputy director general of Dubai Economy said. In fact, there are no waiting time for payment distribution and liquidation. Inflation is also not a concern, obviously, as there is no central authority to manage it as it instead happens with traditional currencies.
For all practical purposes, cryptocurrency is a modern form of digital cash that can potentially replace the need for having money, banknotes and credit cards in a wallet. Although the use of digital cash comes with challenges across the financial industry as some still fear the safety of such payments, the government of Dubai has decided to invest in such project with the firm belief that such a revolution will simplify and enhance the consumer experience of its citizens. Adding a digital currency option and virtual cash transactions (emPay) through mobile payments could improve the speed, convenience and transparency of commerce.
Because digital currency and blockchain technology is so new, is so different, and is so high-tech, it’s early to bet on the short- or long-term value of Dubai’s newly created and separate digital token called emCash. Crypto-currency assets, however, are quickly showing their potential for growth and is buying in more and more everyday users, traders and investors at the highest rates.
Dubai is always on the forefront for innovation in many fields and emCash is definitely one of the best testaments of the emirates fast-forwardness.