Dubai has some exciting news to share! The United Arab Emirates has just unveiled its own CBDC initiative and is ready to follow the trend of central bank digital currencies (CBDCs). This means that the UAE will launch the first phase of its very own CBDC by mid-2024.
Many nations have already begun exploring the potential advantages of CBDCs. Several countries are even currently digitizing their currencies. And while this might sound like a new concept to some, it’s important to keep in mind that countries like China, India, Nigeria, and the Bahamas have already launched pilot CBDC programs to test the concept with their citizens.
The program is just one of nine smaller initiatives that make up the larger project. The UAE Government hopes that this future update will help to resolve issues with both domestic and international payments.
What Exactly does this Indicate?
It indicates the steps the UAE is taking to develop its digital capabilities and increase the effectiveness of its financial activities. Of course, there are still a lot of issues to be resolved before the CBDC program’s first phase launches. But one thing is certain: the UAE has decided to maintain its lead over the competition in terms of cutting-edge financial technologies.
What Steps have been taken by the Administration?
UAE aims to work with other governments to conduct cross-border payments research to accomplish its mission. With the launch of its most prominent digital currency, the “Digital Dirham,” the government of the UAE has taken a big step towards realizing its vision of becoming a leading global financial hub.
To make the digital dirham widely available, the proof-of-concept for domestic CBDC issuance comprising wholesale and retail usage will also be taken into consideration. Experts predict that the Digital Dirham will facilitate financial transactions and provide nationwide economic and political independence.