Blockchain in Developing the Digital Future of UAE
Blockchain technology became poised in shaping the future of the UAE recently. And this would be during a time while the nation adopts a digital economy agenda. So, businesses have realized that the only option they have to stay competitive is to accept the digital route.
CEO of Dubai Blockchain Center, Dr. Marwan Alzarouni, stated, “The post COVID-19 work is increasingly focused on digitization of services and therefore needs better trust models to cater for this new medium of trade and interaction.”
He also added that the blockchain technology would have a central role. Specifically in giving online trust, assurance, and the auditability of transactions. Currently, it is playing a pivotal role in the sectors of the supply chain, health care, educational technology, and financial technology.
Then, the co-founder of Addenda, Walid Daniel Dib, noted that they no longer classify decentralization and replacing legacy bureaucratic processes as a luxury. The UAE is at the forefront of this process. They are becoming one of the earliest nations to pilot some blockchain use cases.
About nine insurers in the UAE have adopted the Addenda blockchain. They have also Dh40 per claim by digitizing their motor claims reconciliation. For other industries, there are banking consortiums forming into the DIFC, as well as partnerships among airlines and blockchain-based loyalty reward programs.
Tether Won’t be Easily Displaced
Meanwhile, Chief Technology Officer (CTO) of Bitfinex and Tether, Paolo Ardoino, recently said that drives for governments to adopt regulatory paths towards central bank digital currencies wouldn’t likely affect stablecoins such as Tether.
In addition to that, Ardoino believes that Tether will continue to exist alongside CBDCs. He also added a few different blockchains like Algorand, Ethereum, EOS, Liquid Network, Omni, and Tron. Tether will stay in demand as it further serves and unifies a variety of ecosystems, Ardoino added.
Government in CBDCs
In a report on July 15, the Japanese government apparently aimed to include the consideration of a central bank digital currency (CBDC) in its official economic plan. This came shortly after the Bank of Japan announced that it would begin experimenting with a digital yen. On the other hand, Bank of England governor Andrew Bailey stated the institution was also thinking about the issuance of a digital pound.
Aside from that, Ardoino noted that it is quite impossible for CBDCs in any country to replace Tether (USDT) as the token has dwarfed rival stablecoins, such as the USD Coin (USDC) and Binance USD (BUSD) when it comes to market cap, trading volume, and the number of users.
Several digital yuan experts agree with this. Genesis Block’s Charles Yang said that China might not quickly halt the circulation of USDT. This is true even with any threat it might pose to capital controls and oversight. Every day, they trade hundreds of millions of dollars in Tether in the Asian nation.
Tether overtook XRP to become the third-largest token by market cap in May. A recent report expected that USDT might eventually pass Ethereum (ETH) to fill the number two slot. Based on the crypto analytics firm Messari, USDT recently has a market capitalization of approximately $10.3 billion.
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