UAE to Launch Digital Dirham for Domestic & International Payments
The Central Bank of the United Arab Emirates (UAE) plans to launch a central bank digital currency (CBDC) for cross-border and domestic use as the first of its newly launched Financial Infrastructure Transformation (FIT).
In the UAE’s Central Bank recent announcement, the central bank introduced the FIT programme, emphasizing that it aims to support the country’s financial services sector. The central bank noted that the initiative will facilitate digital transactions and aims to enhance the UAE’s competitiveness as a financial and digital payment hub.
The issuing of a CBDC is part of the FIT programme’s initial phase. The central bank claims that issuing a CBDC will alleviate the issues and inefficiencies associated with cross-border payments and, in turn, foster innovation in domestic payments.
Khaled Balama, the Governor of the Central Bank, stated:
“The FIT programme embodies the directions and aspirations of our wise leadership towards digitising the economy and developing the financial sector.”