Significant expansion based on the «digital money»Truth Consultancy
Emirates nearly free of cash payments environment
Abu Dhabi – Abdel Fattah Montasser
Financial experts and bankers predicted that the 2017 general expansion in reliance on «digital money» and went Emirates effectively towards the «free environment of the cash payments» stressing that the structures of digital and technological infrastructure is one of the basic ingredients for continued development of the banking sector and financial markets, since they allow the flow of funds financial assets and the economy in a safer and more streamlined, raising confidence in financial transactions in the national currency.
They confirmed that the central bank played a pivotal role in this area by providing payment and settlement services and supervision of the infrastructure of the market and financial instruments payment and consult on an ongoing basis with the financial institutions and regulatory authorities for interaction with regional and international developments in the field of infrastructure of the financial market and payments as a critical financial practices.
They pointed out that the latest official reports show that the direct debit transaction size despite the dwindling proportion to the total transactions has been growing in an escalating since the introduction of these transactions locally in 2013, reaching 7930 transactions annually, and the number of transactions rose to 650 thousand transactions in 2014 It doubled several times for up to 2.1 million transactions in 2015, expecting that this increase is largely continue in the years 2017 and 2018.
Reda Mosallam general manager of «Truth» Economic Consultancy said the UAE banking sector cut over the past two decades and the current great strides towards becoming a «free cash payments environment» with strong support from the Central Bank to develop the infrastructure of the financial market and services electronic and digital payment so that in line with the best practices in developed economies and are taken into account the overall risk management more effectively and to encourage the use of electronic means of payment.
He pointed out that the central bank has taken steps to develop a road map to support the initiative «smart government» of the UAE, with priority to the field of digital payments granted in order to upgrade and strengthen the regulatory framework of the means of payment stored value and establish the necessary infrastructure to support the interoperability of digital payments among all financial institutions in the UAE.
Policies and regulations
He predicted banking expert Amjad Nasr to testify this year, a significant expansion in reliance on «digital money», pointing out that this expansion was expected to require a further development of policies and regulations that ensure the reduction of overall risk and enhance transparency and financial stability.
He stressed that the central realized this years ago, and he followed the steps aimed to push for the achievement of these objectives by monitoring existing systems and other planned and evaluated against the goals and make the necessary adjustments when necessary.
Nasrallah and expressed his belief that the payment services in the UAE in various components have been launched fundamentals and advanced standards taking into account the diversity They have been subjected to a series of major reforms under the leadership of the Central Bank, thanks to the effective cooperation between the relevant financial institutions and the regulatory authorities.
The social dimension
Ahmed Seif El-Din, Director General of the financial guarantee opines that the most important characteristic of the development of payment systems the state processes that they take into account the social dimension and highlighted the steps taken in this regard the actions carried out by the central bank to support «WPS» which aimed to facilitate the payment of workers’ wages in the times specific thus contributing to the achievement of the desired objectives of the UAE government in this area.
He explained that at the level of the regional role of the state in the field of digital cash has been the Central Bank effective Made in the project Gross Settlement system in real time of the Gulf Cooperation Council (GCC), which aims to enable process payments across borders among the GCC countries in real time through the use of local currencies As the ultimate goal for this project.
It is to strengthen the integration of the local payment systems in all GCC countries, and improve the effectiveness and efficiency of existing settlement mechanisms as there are serious efforts to play a pivotal role in supporting the UAE integration into the project «Arab Regional payment system».