The UAE central bank unveils The digital Dirham CBDC strategy.
The Central Bank of UAE (CBUAE) and G42 Cloud and R3 signed an agreement to implement the CBUAE Central Bank Digital Currency (CBDC) Strategy – the Digital Dirham – one of the nine initiatives of the CBUAE Financial Infrastructure Transformation (FIT) Program.
For its CBDC implementation, the CBUAE has contracted G42 Cloud and R3 as infrastructure and technology providers, respectively.
The first phase of CBUAE’s CBDC Strategy, which is anticipated to conclude within the next 12 to 15 months, consists of three major pillars: the soft launch of mBridge to facilitate real-value cross-border CBDC transactions for international trade settlement; proof-of-concept work for bilateral CBDC bridges with India, one of the UAE’s top trading partners; and proof-of-concept work for domestic CBDC issuance covering wholesale and retail usage.
CBDC is a risk-free digital currency issued and backed by the central bank that serves as a safe, cost-effective, and efficient form of payment and store of value.
As part of the UAE’s digital transformation, CBDC will help fix problems with domestic and international payments, make it easier for people to get money, and move toward a cashless society. It will improve the UAE’s payment infrastructure by adding more secure payment channels, making sure that the financial system is strong and reliable.
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