The UAE Issues Digital Stamps, First NFT To Appear In Middle East

Digital stamps as NFT issued in UAE. (photo: doc. pixabay)

JAKARTA – The postal operator of the United Arab Emirates issued a nonfungible token (NFT) stamp to commemorate the federation's 50th National Day. They offer further evidence that this digital collection is gaining mainstream traction globally.

The Emirates Post Group (EPG), announced this week that it has become the first postal organization in the Middle East and North Africa to issue digital collection stamps. New stamps, launched on December 2nd, a National Holiday.

The new collection consists of blockchain-based digital twins that will be sold as digital collectibles connected to their physical counterparts.

A total of four stamps, each with a different design comprising a national theme, will be issued. Shoppers will be able to see the digital design associated with the physical stamp they purchased after scanning the QR code printed on the card.

To activate the digital collection on the blockchain, the user must scan the QR code hidden on the back of the card.

EPG CEO, Abdulla Mohammed Alashram, told Cointelegraph that embracing NFT is in line with the company's vision to be more digitally oriented.

Following the COVID-19 pandemic, EPG is "exploring how the application of blockchain technology can streamline and improve our operations and introduce other competitive advantages."

When asked Cointelegraph whether NFT stamps are a one-time intervention into the blockchain or part of a broader strategy to embrace new technologies, Alashram said EPG plans to launch more digital stamps in the future:

“The application of the latest advances in digital technology in our operations is also to address the technology literate generation who prefer digitally accessible services. As part of our efforts to bridge the gap between traditional stamps and the digital world, we are also working to launch more NFT stamps," said Alashram.

The UAE has adopted a progressive stance towards blockchain technology and digital assets, with local regulators pushing for many crypto-friendly regulations. In September, local authorities established a new regulatory framework that supports cryptocurrency trading and related activities in Dubai's economic free zone, potentially opening doors for wider adoption and innovation in the Emirate.

In late October, the Dubai Financial Services Authority, also known as DFSA, clarified the regulations surrounding so-called investment tokens. The framework is intended to provide legal certainty for both investors and market participants.