Categories: Global Adoption

United Arab Emirates Central Bank Unveil Wholesale-Retail Digital Dirham Plan

The Central Bank of the United Arab Emirates (CBUAE) is set to unveil its digital cy, the digital dirham, to revolutionize retail and wholesale transactions in a groundbreaking collaboration with industry giants R3 and G42 Cloud, a division of AI powerhouse G42, marking the commencement of this transformative endeavor.

R3 and G42 Cloud join forces to spearhead the UAE’s digital cy initiative. The initial phase includes the soft launch of Project mBridge for seamless cross-border transactions. Subsequent steps involve proof-of-concept for a bilateral CBDC bridge with India, a vital trading partner, and domestic CBDC development catering to wholesale and retail needs. This collaboration promises cutting-edge technology for revolutionizing financial transactions in the UAE.

The CBUAE’s introduction of CBDC aims to address domestic and international payment challenges, promote financial inclusion, and transition towards a cashless society. This initiative aligns with its Financial Infrastructure Transformation Programme and builds on previous collaborations like Project Aber with the Saudi Central Bank. EY underscores the CBUAE’s call for participation from all banks and payment processors, signaling a concerted effort towards integrating the digital dirham platform.

Additionally, the regulator has mandated the adoption of the Digital Dirham by all UAE-licensed financial institutions by 2026, underscoring its commitment to embracing digital innovation in the financial sector.

Terron Gold

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