Emcredit, a subsidiary of Dubai Economy, and the UK-based Object Tech Grp Ltd teams up under the Dubai Economy Accelerators umbrella to develop and implement emCash, the first official state digital currency, that people will be able to use to pay for various government and non-government services.
As the announcement claim, emCash will be the digital currency in emPay wallet, launched by Emcredit to support contactless payments. Thus, "emPay allows UAE residents to make varied payments, from their daily coffee to money transfers, through the near field communication option in their phones".
Object Tech has now signed a memorandum of understanding with Dubai Economy under which it will work with Emcredit in order to to develop and implement emCash. Ali Ibrahim, Deputy Director General of Dubai Economy, argues that emCash would give a financial identity to contactless transactions, reinforce Dubai as a competitive business destination, enhance customer happiness and accelerate Dubai's evolution into a smart economy.
A digital currency has varied advantages – faster processing, improved delivery time, less complexity and cost, to name a few. It will change the way people live and do business in Dubai, and mark a giant leap for the city in harnessing game-changing innovations to improve ease of business and quality of life.
Deputy Director General of Dubai Economy
Muna Al Qassab, CEO of Emcredit Limited, explains that customers will be able to choose between two payment options on the emPay platform – the existing dirham payment or emCash. "While the dirham payment goes through normal settlement procedures, intermediaries and costs, emCash payments are settled directly between the user and merchant. emCash thus gives real time value movement and merchants can pass the cost benefit to the emCash holder. It also reduces fraud as well as inflation since currency is issued in real time based on actual demand", - the man details.
It is also said, that a number of associated products to protect emCash wallet and digital documents, enable direct real-time settlement and peer-to-peer lending, and provide credit rating based on the distributor ledger of emCash will be developed.