UAE Central Bank Unveils CBDC Strategy Dubbed ‘The Digital Dirham’

• The Central Bank of the UAE (CBUAE) has partnered with G42 Cloud and R3.
• Launching a digital currency issued by a central bank is one of the nine measures.

On March 23, the UAE’s Central Bank unveiled its Central Bank Digital Currency (CBDC) strategy, dubbed “The Digital Dirham.” The Central Bank of the United Arab Emirates (CBUAE) has partnered with G42 Cloud and R3, respectively, to supply the necessary infrastructure and technology for its digital currency initiative.

Moreover, a brand-new Financial Infrastructure Transformation (FIT) initiative was recently introduced by the bank. The goal of the project is to speed up the financial services industry’s transition to digital platforms, as was reported last month.

Furthermore, this will be accomplished by fostering the growth of digital commerce and inspiring ecosystem innovation. As a result, the United Arab Emirates (UAE) chances of becoming a center for finance and digital payments should improve.

Part of CBUAE’s FIT Program

Launching a digital currency issued by a central bank is one of the nine measures comprising the program. The difficulties of both local and international money transfers will be eased by the introduction of digital currency. More people will have access to financial services, and it will facilitate the United Arab Emirates’ transition to a cashless society. Further explaining this, CBUAE Governor Khaled Mohamed Balama highlighted a few points.

The governor stated:

“CBDC is one of the initiatives as part of the CBUAE’s FIT programme, which will further position and solidify the UAE as a leading global financial hub. The launch of our CBDC strategy marks a key step in the evolution of money and payments in the country.”

As per reports from local media, there are three primary components to the strategy’s initial stage. The first is the rollout of mBridge, which will allow for real-value cross-border CBDC engagements for international trade payments.