When discussing blockchain innovation and usage amongst major cities and nations, the United Arab Emirates and the futuristic city of Dubai tend to be atop the list. In most recent events, the National Bank of Dubai (NBD) has begun to use blockchain technoloy to put an end to check fraud.
The new blockchain check system being run by NBD uses a quick response (QR) code on each individual check. Each coding is then sent onto the blockchain, a system in which they’re calling “check chain” technology.
Chief Operating Officer Abdulla Qassem stated that NDB is the first bank to use this kind of technology.
“Emirates NBD is committed to exploring commercial uses for this innovative technology. After a successful pilot phase, we are pleased to roll out Cheque Chain to our customers nationwide, becoming the first bank in the region to offer this service,” Qassem said. “This initiative will significantly strengthen our risk and security management processes, particularly through the reduction of check fraud.”
The bank’s new system is a small part of the "UAE Blockchain Strategy 2021" that is already underway, with the sole purpose of processing at least half of the government's transactions at the federal level using blockchain technology by 2021. The plan is supposed to save the country about $3 billion annually and reduce government documents by nearly 400 million along with ending millions of hours of unnecessary work and time spent traveling.
During the first month running the system, NBD says they registered close to one million leafs using blockchain. They're also in the planning stages of using this blockchain platform to work with other financial institutions in the region.