UAE Inches nearer to Digital Dirham release with brand new CBDC Technique

The United Arab Emirates’ Central Bank will introduce the CBDC Bridges initiative.
With a possible launch date of mid-2024, the Central Bank of the United Arab Emirates (CBUAE) has announced that it intends to introduce the first phase of its Central Bank Digital Currency (CBDC) over the next 12 to 15 months. In addition to bilateral ties with another nation, this launch will see the development of a proof-of-concept for the issue of CBDCs.
The UAE central bank described its three-pillar CBDC programme, which would aid in the introduction of the Digital Dirham, in a statement that was made public on Thursday. The first pillar will be the successful start of its mBridge project, a joint venture with the main banks of Thailand, Hong Kong, Japan, the United Arab Emirates, and the Bank for International Settlements (BIS). The goal of this project is to make real-value cross-border CBDC transactions easier for the settlement of international trade.
One of the main trading partners of the UAE, Japan, wants the CBUAE to create a proof-of-concept for bilateral CBDC bridges in order to fulfil the second pillar. The CBUAE will produce proof-of-concept work for domestic CBDC issuance that addresses both wholesale and retail usage as part of the third pillar.
The central bank of Abu Dhabi has also declared its collaborations with R3, a well-known blockchain company, and G42 Cloud. R3 will supply the technology support for the CBDC programme, while G42 Cloud will handle the infrastructure.
“CBDC is one of the projects included in the CBUAE’s FIT programme, which will further position and solidify the UAE as a prominent global financial hub,” stated Khaled Mohamed Balama, governor of the CBUAE. An major milestone in the nation’s development of money and payments has been reached with the start of our CBDC programme. CBDC will encourage financial inclusion and quicken our transition to digitalization. We are eager to investigate the potential benefits that CBDC offers to society and the broader economy.
The Digital Dirham is a Priority for the Central Bank
Saudi Arabia is also embarking on a scheme comparable to the UAE central bank, which is one of several authorities in the area focusing on CBDCs. In this regard, both nations have lately established a collaboration.
The United Arab Emirates (UAE) has demonstrated progressiveness in regulating cryptocurrencies. To attract large cryptocurrency enterprises, Dubai recently established a specialised cryptocurrency regulatory agency and implemented legislation that are supportive to the industry. The first free financial zone exclusively for digital assets and digital enterprises was recently established by the emirate of Ras Al Khaimah (RAK).