Dubai Department of Finance, Smart Dubai launch blockchain-based Payment Reconciliation and Settlement System

The Smart Dubai Office (SDO), in collaboration with the Dubai Department of Finance, has launched a blockchain-based system to enable real-time processing of payments and expedite government transactions, according to a press release on Zawya.

The rollout of the ‘Payment Reconciliation and Settlement’ System is being touted as a “Blockchain-powered upgrade” to the financial system.

In the existing setup, the finance department’s procedures are not only labor intensive but also a time-consuming process that could take up to 45 days. The new blockchain-based system will allow transactions to be performed accurately and in real time and economising time and effort.

“The new and advanced ‘Payment Reconciliation and Settlement’ System offers Dubai Government entities many significant benefits,” H.E. Wesam Lootah added. “Besides enabling near real-time reconciliations and settlement, the System eliminates friction from financial processes through automation and minimising human intervention. It allows for clear visibility of funds; immediate disputes and claims resolution; transparency and immutability of financial records.”

According to the release, the first two government agencies to join the system are the Dubai Electricity and Water Authority (DEWA) and the Knowledge and Human Development Authority (KHDA). The two agencies have already processed a combined total of over five million transactions using the advanced blockchain-based system.

Other government entities, including Dubai Police; Roads and Transport Authority (RTA); Dubai Health Authority (DHA); Dubai Airports; Dubai Customs; Dubai Municipality; Department of Tourism and Commerce Marketing (DTCM); Dubai Courts; and Dubai Holding, will be joining the system in the coming period.