The Central Bank of the UAE (CBUAE) is expected to release the digital dirham called Central Bank Digital Currency (CBDC) for domestic and international payments.
This move is part of the CBUAE’s ‘Financial Infrastructure Transformation Program’ comprising 9 initiatives aimed at expediting digital transformation.
The project’s first phase involves the creation of digital payment infrastructures and services, focusing on issuing a digital dirham for both international and local use.
The Central Bank states that it will improve financial inclusion, increase payment security and efficiency, and ultimately lead to a cashless society.
The announcement comes after other countries also revealed their plans for digital currencies. Last week, the Bank of England announced plans for a digital pound.
Also, Dubai recently launched comprehensive laws for the cryptocurrency sector. These regulations include a licensing regime for crypto companies and a ban on anonymous cryptocurrencies.