UAE has been one of the front liners in cryptocurrency and blockchain adoption. The government values the potential of blockchain technology and has been an active supporter of it. Dubai Multi Commodities Centre (DMCC), a free trade zone established by the government, entered into a partnership with REIT Development to construct a precious metal refinery
The sale and purchase agreement of a 100,000 square foot land has been announced to have been signed by the parties. This will be the largest precious metal refinery and storage unit in the Gulf region. Moreover, the refinery will be backed by blockchain technology.
The facility will have precious metals like gold, silver, platinum, palladium etc. and these precious metals will provide backing for asset-collateralized stablecoins. The stablecoins like GoldCoin, SilverCoin etc. will be based on the Ethereum network and each coin will be backed by one gram of the respective metal. The precious metal-backed stablecoin will be traded on DMCC’s gold exchange platform.
The blockchain-based metal refinery is just one use of blockchain technology. The refinery is also a testament to the fast pace at which blockchain is being integrated. The day may not be too far when cryptocurrencies become the mode of payment as well as a viable investment tool.
UAE minister of economy Abdulla Bin Touq Al Marri, in the World Economic Forum’s conference on Global Technology Governance, had stated that the integration of blockchain technology into the country is the way to double the economy of UAE in a decade’s time. UAE also has a few more ambitious projects under works that are focused on the incorporation of block chain technology as well as supporting innovation in the crypto sphere.