UAE Advisory Council Recommends The Use Of Blockchain In Banks 

Cryptocurrencies may be at their lowest lows now but blockchain technology is still making waves across the globe. Recently, the United Arab Emirates Banks advisory council had a meeting in which they discussed the benefits of applying blockchain technology in all member banks. This is according to the news released by Gulf News, an English speaking Dubai-based newspaper on the 17th.

The UBF’s advisory council is a nonprofit organization that represents about 50 banks within the country. To improve KYC processes, the council suggested the integration of blockchain technology. According to the chairman of the UBF, Abdul Aziz Al Ghurair, this initiative represents the council’s effort to develop and maintain a thriving banking environment. They also discussed things related to the national and digital Emiratization and transformation program. This is an initiative that was employed by the government to statistically place citizens in roles in private and public sectors.

The chairperson of the committee, Aref Al Ramli made a presentation of a blockchain-based study that explores all the benefits of digitizing processes among member banks using blockchain technology. The study mentioned several ways blockchain technology can be applied in banking institutions. Some of these applications include compliance reporting, cross-border payments, customer onboarding, etc.

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According to Al Ghurair, emerging technologies will continue to shape customer expectations and needs thus putting participants of the banking industry at the forefront of innovation. He also said that innovations like blockchain technology will help banks create new streams of revenue. This will, in-turn, will lead to sustainable business development.

In November, the governmental Blockchain and AI Joint Working Group sat down for a yearly meeting. During the meeting, strategies that can be used to attract foreign investors and create the required infrastructure using blockchain and AI were discussed.

That same month, the AI Hilal Bank based in Abu Dhabi announced that it has completed the first ever sukuk transaction using blockchain technology. Sukuk is a tool that is also known as Sharia compliant bonds. It allows investors to get returns in compliance with the Islamic law.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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