The Strategist

UAE central bank launches Digital Dirham

03/24/2023 - 02:41

The UAE Central Bank has introduced the Digital Dirham as part of a plan to get the nation's financial infrastructure ready for the future.

The central bank has "signed an agreement with Abu Dhabi-based company G42 Cloud and digital financial services provider R3, which will start building the infrastructure and technology to implement the central bank's digital currency (CBDC)," according to a statement from the regulator, which was cited by the Emirati newspaper The National.

"Digital Dirham seeks to address the so-called "pain points" of domestic and international payments, expand access to financial services, usher in the cashless society, and strengthen the UAE's payment infrastructure by introducing new channels," comments the bank.

The newspaper cited central bank governor Khaled Balama as saying that the financial infrastructure transformation strategy, which the regulator unveiled in February, "will strengthen the UAE's position as a leading global financial center."