Emirates NBD Enables Blockchain for Issuing Checks
April 23, 2018
One of the major bank holdings in the Middle East Emirates NBD became the first bank in the region to implement blockchain in the process of check issuing. As Arabian Business reports, the organization will use the technology with the view to prevent check fraud.
The system called Cheque Chain functions as follows: each issued check gets its QR-code printed which is recorded in blockchain. This facilitates verification of issued checks and makes them compliant with security measures in the banking industry of the UAE.
According to the official statement by Emirates NBD, about a million checks have been issued in a month in the course of testing the system. The test was passed successfully so the bank’s board plans the system will be used in other financial institutions of the country.
“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”, chief operating director of NBD Abdulla Qassem said.
Note that bank checks are a popular means of payment and settlement in the UAE used intensively by businessmen and commercial companies.