UAE Central Bank launches its digital currency strategy

By Nada Ali On Mar 23, 2023

UAE Central Bank Governor Khaled Balama, second from right, has signed an agreement with Abu Dhabi's G42 Cloud and digital finance services provider R3 for the Digital Dirham strategy. Photo Credit: UAE Central Bank

The Central Bank of UAE (CBUAE) has launched on Thursday its digital currency implementation strategy, amid signing a new deal on Wednesday with G42 Cloud and R3 to develop proper infrastructure and technology.

The first phase of the strategy expected to be finished in 12 to 15 months and will comprise three significant pillars, including the soft launch of mBridge which helps facilitate real value cross-border central bank digital currency transactions.

Another pillar is to create a proof-of-concept for bilateral digital currency bridges with India, which is one of the UAE’s top trading partners, while the last aspect is to prove efficiency for domestic issuance in wholesale and retail sectors.

The strategy will further strengthen the country’s payment infrastructure by providing additional payment channels and ensuring a reliable financial system, Khaled Balama, governor of CBUAE, said.