UAE teams up with Chainalysis to provide blockchain training to government entities

Project will educate government employees on emerging technology

Omar Al Olama, Minister of AI, Digital Economy and Remote Work Applications and Bas Lemmens, of Chainalysis, during the signing ceremony. Photo: Ministry of AI, Digital Economy and Remote Work Applications
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The UAE's Ministry of Artificial Intelligence, Digital Economy and Remote Work Applications signed a preliminary agreement with blockchain data platform Chainalysis to provide virtual training programmes for the country's government entities.

The UAE Chainalysis Centre of Excellence will help government employees upskill themselves with knowledge about blockchain — the decentralised platform seen as a secure way to conduct transactions — and other technology shaping the future economy such as digital assets, the ministry said in a statement on Tuesday.

"Blockchain technology is key to creating innovative solutions for future challenges, which contributes in developing government work and new technologies that enhance the UAE’s leading position globally," said Omar Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Application.

"Strengthening partnerships with pioneering companies is a pillar in enhancing the readiness of the UAE government through exchanging experiences and global success stories."

The UAE has taken several steps to integrate blockchain into the economy, government and society as part of efforts to develop the future economy.

In May, Dubai's Virtual Assets Regulatory Authority (Vara) said it had entered into the metaverse with the establishment of its Metaverse HQ, making it the first regulator to have a presence in the emerging digital space.

Vara was established by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in March under the Dubai Virtual Asset Regulation Law, the first law in the emirate that regulates virtual assets.

The body aims to create an advanced legal framework to protect investors and provide international standards for virtual asset industry management to enable responsible business growth in the emirate.

In the capital, Abu Dhabi Global Market (ADGM) is engaging with industry players and fellow regulators to develop a framework to govern emerging technology as part of its role to provide a safe and inclusive technological ecosystem.

In May, ADGM's Financial Services Regulatory Authority opened its fifth Regulatory Laboratory sandbox programme, inviting FinTech organisations to pitch their ideas on decentralised applications.

“Where others wait by the sidelines, the UAE has taken commendable steps towards establishing itself as a global blockchain and crypto hub," said Michael Gronager, chief executive and co-founder of Chainalysis.

The global blockchain market is projected to reach almost $7.18 billion this year and roughly $164bn by 2029 at a compound annual growth rate of over 56 per cent from about $4.7bn in 2021, Fortune Business Insights said.

The programme with Chainalysis will play an integral part in building a smart future for the UAE, Mr Al Olama said.

The training will cover topics including economic opportunities and risks in the blockchain sector, virtual assets in the UAE and the Middle East and the challenges facing them, the regulatory and political perspective of virtual assets, and other related discussions.

The UAE government has already developed an advanced digital infrastructure, which will be a "stepping stone in accelerating digital transformation and enhancing the UAE’s competitiveness globally", the minister said.

The UAE government and Chainalysis also aim to achieve the objectives of the National Programme for Coders, which launched Coders HQ in January.

The agreement will provide an opportunity for people in the government sector to train on blockchain systems through co-operation with Coders HQ.

"We want to build trust in blockchain and drive the adoption of digital assets," said Bas Lemmens, general manager for Europe, the Middle East and Africa at Chainalysis.

Updated: July 05, 2022, 2:06 PM