There are strong indications that the Central Bank of the UAE (CBUAE) will release the digital dirham known as Central Bank Digital Currency (CBDC) for use in domestic and international payments in the near future.
The CBUAE is implementing this new initiative as part of its ‘Financial Infrastructure Transformation Program’, a series of nine initiatives aiming to accelerate the digital transformation of the financial infrastructure.
During the first phase of the project, the goal is to develop digital payment infrastructures and services, focusing on the creation of a digital dirham that can be used both internationally as well as locally.
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Based on the Central Bank’s statement, the proposed legislation will lead to an increase in financial inclusion, a greater degree of security and efficiency in payments, and ultimately the elimination of cash from society.
It was announced shortly after other countries also announced their plans for the creation of digital currencies. The Bank of England announced last week that it would introduce a digital pound as early as next year.
In addition, Dubai recently implemented comprehensive legislation regarding the cryptocurrency sector in the country. In addition to the licensing regime for crypto companies, these regulations also ban the use of anonymized cryptocurrencies.
