When it comes to the adoption of blockchain technology, countries such as Switzerland, Australia, and UAE stand apart from others, with their openness in encouraging innovation. UAE, in particular, has gone ahead in implementing several blockchain related projects at government level. Now, it has added one more jewel to its crown. Emirates NBD, headquartered in Dubai, has taken initiatives to prevent cheque-related fraud with blockchain technology. Following last year’s successful pilot project, dubbed “Cheque Chain”, the bank is implementing the technology that provides another layer of security to its clients across UAE. The pilot project was overseen by Emirates NBD Future Lab.
Cheque Chain technology involves the inclusion of a QR (Quick Response) code in every cheque leaf issued by Emirate NBD. The QR code, along with other details regarding the cheque leaf, is recorded in the blockchain platform. Whenever a cheque comes for clearance, the concerned bank can verify the authenticity of the cheque and obtain other details, including its source, before clearing it using the bank’s ICCS technology.
The bank stated that the provision to verify the authenticity of cheque leaf through blockchain technology will considerably strengthen the security standards of the UAE banking sector.
The bank also revealed that it has registered as much as one million cheque leafs in its blockchain platform in the past one month. Emirates NBD is now exploring the possibility of sharing the technology with other financial institutions in the UAE.
Abdulla Qassem, group chief operating officer, Emirates NBD said
“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. This initiative will significantly strengthen our risk and security management processes, particularly through the reduction of cheque fraud.”