ABU DHABI: The Central Bank of the UAE (CBUAE) has published a comprehensive report detailing its progress on the “Digital Dirham” project, highlighting major milestones achieved in preparation for launching the UAE’s national digital currency. The initiative aligns with the nation’s broader goals to support digital transformation and a dynamic digital economy.
The report provides a detailed analysis of the design principles and policy frameworks guiding the development of the Digital Dirham, ensuring the digital currency remains secure, user-friendly, and in line with global standards set by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS).
As outlined by the CBUAE, the Digital Dirham will serve as a digital equivalent of physical cash, designed for use in a variety of transactions, including online, in-store, peer-to-peer, and commercial payments. Features such as offline usability, smart contract integration, and cross-border functionality aim to increase the efficiency of the UAE’s financial ecosystem.
The CBUAE has worked closely with financial institutions and strategic partners to drive adoption and ensure effective implementation. The digital wallet platform developed by the CBUAE will allow both residents and non-residents to conduct seamless financial transactions, contributing to greater financial inclusion.
Governor Khaled Mohamed Balama stated, “The Digital Dirham represents one of the CBUAE’s key strategic initiatives shaping the future of financial services in the UAE. It will help ensure a secure and efficient financial infrastructure, support monetary stability, and enhance the international standing of the UAE Dirham.”
As part of its Financial Infrastructure Transformation (FIT) programme, launched in 2023, the CBUAE has also initiated pilot projects, including a real-value retail trial and a cross-border implementation, to assess the effectiveness and future potential of the digital currency.
The report underscores the CBUAE’s cautious and structured approach to introducing a central bank digital currency that meets the needs of a fast-evolving digital economy.
