The UAE project will allow customers to trade tokenized sugar 24/7 without brokers and is in line with the objectives of the Emirate Blockchain 2021 strategy.
The world’s largest sugar refinery, Al Khaleej Sugar, officially announced the application of the blockchain technology Bitcoin Machine in its recently launched sugar trading platform, DigitalSugar.io.
Users of the platform based in the United Arab Emirates will negotiate the spot price of sugar through tokens linked to „up to 100,000 tonnes of raw sugar“, with the linkage secured by the Universa block chain, which will issue electronic property guarantees with the tokens. Traders will be able to hold tokens representing between 1 kg and 1 million tonnes and will pay 0.4% in exchange fees, as well as an annual storage fee of 2.5%.
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The platform, launched in partnership with the flagship Free Trade Zone and the Dubai Government Commodity Trading Authority (DMCC) and Universa Blockchain, will be the first global exchange to offer traders and investors immediate cash exchanges of raw sugar, rather than more common options or futures offered by other current exchanges.
Jamal Al Ghurair, Managing Director of Al Khaleej Sugar, said the launch of a blockchain-based sugar trading platform is in line with the broader objectives of the UAE 2021 Blockchain Strategy, which was launched in 2018 by H.E. Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai.
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The Emirate Blockchain 2021 Strategy outlines an ambitious plan to migrate at least 50% of government-related transactions to distributed record technology (DLT) platforms by the end of this year.
Sheikh Mohammed said of the Strategy
„The adoption of this technology will be reflected in the quality of life in the UAE and will improve the levels of happiness of citizens. Fifty percent of government transactions at the federal level will be carried out using Blockchain technology by 2021… This technology will save time, effort and resources and allow people to perform most of their transactions in a timely manner that suits their lifestyle and work.