Dubai Announces Blockchain-Based Digital Silk Road Initiative to Transform Global Trade

Dubai Chamber of Commerce and Industry (DCCI), in collaboration with the Dubai Future Foundation (DFF), announced the Digital Silk Road project, which aims to leverage blockchain technology to address the global trading system’s key issues and challenges. The initiative is expected to start in the next eight months.

According to DCCI, the project will rely on digital transformation and comprehensive process automation to support transparency in supply chain management. Also, Digital Silk Road will help businesses master tech-oriented abilities, speed up transactions, enhance security and minimize trade in counterfeit goods. Furthermore, the project will provide the necessary data to its members to ensure a satisfactory customer experience.

Digital Silk Road is part of a broader initiative called Dubai 10X, which was launched by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. The goal of the Dubai 10X strategy is to place the city ten years ahead of the world in terms of technology adoption, innovation, and lifestyle.

The Digital Silk Road project will revolve around a complex but intuitive blockchain-powered platform that would address common trade issues like high costs and lack of transparency and security.

Under the new project, DCCI is partnering with Dubai Customs, but it said that it would also deal with global partners, including companies and agencies from the US and Netherlands.

Hamad Buamim, president and CEO of DCCI, commented:

“The Dubai 10X approach offers a way to overcome all the challenges and current constraints facing the trade sector by introducing a unique system.”

Speaking about the Digital Silk Road strategy, Buamim said:

“We have been able to develop a project that is aligned with the vision of the initiative and meets Dubai’s need for a platform that facilitates more cost-efficient, safer and faster trading. We can avoid all obstacles and unnecessary procedures and enhance our role as a trading chamber by using the latest technologies such as blockchain.”

The new platform will allow to monitor multiple transactions and to speed them up and will ensure the secure authentication with the help of encryption mechanisms.

Dubai is probably the most blockchain-friendly government out there. Last year, it announced that it wanted to become the world’s first blockchain-powered government by 2020.