CBUAE publishes comprehensive report on progress made towards issuing 'Digital Dirham'
The report provides an in-depth review of the key achievements to date, along with a comprehensive analysis of the ongoing research and development as the CBUAE moves towards officially launching the national central bank digital currency (CBDC) in the near term. It covers the design principles and policy frameworks that have shaped the development of the Digital Dirham, ensuring it remains secure, reliable and easy to use, in line with best practices and standards issued by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).
It also highlights the CBUAE's close collaboration with the financial sector and strategic partners to ensure the effective adoption of the Digital Dirham. The report outlines Digital Dirham capabilities and role in driving innovation and financial inclusion, enabling access for the unbanked and non-residents in the UAE, accelerating transactions and boosting the efficiency of payment systems through features such as offline usability, smart contracts and cross-border transactions.
The Digital Dirham is the digital alternative to physical money and can be used for a wide range of payments, including online, in-store, commercial and peer-to-peer transactions. Furthermore, the CBUAE has developed a comprehensive platform for issuing, trading, and using the digital dirham, including the digital wallet, which enables individuals and businesses to conduct financial transactions.
Commenting on this milestone, Khaled Mohamed Balama, Governor of the CBUAE, said, "The Digital Dirham represents one of the CBUAE's key strategic initiatives shaping the future of financial services in the UAE and marks an important achievement in the global development of central bank digital currencies.
The Digital Dirham will help ensure a secure and efficient financial infrastructure for the UAE, enhance the efficiency of our payment ecosystem, support monetary stability, expand financial inclusion, and strengthen the international standing of the UAE Dirham."He added, "We will continue to rigorously assess the design and development of the Digital Dirham to ensure its successful rollout and transformational impact through a consistent and prudent approach."
The introduction of the Digital Dirham is part of the CBUAE's Financial Infrastructure Transformation (FIT) programme which was launched in 2023. This follows as a proactive response to the evolving needs of a digital economy while upholding public confidence in the national currency.
The CBUAE has already launched a cross-border application of the Digital Dirham and carried out a real-value retail pilot to evaluate its future design, technology and advantages as well as key digital economy use cases to assess the feasibility and effectiveness of the Digital Dirham.
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