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UAE Completes First Government-Level Transaction with 'Digital Dirham' CBDC, Testing Takes Less Than Two Minutes
Summary: According to reports, the UAE Ministry of Finance and the Dubai Financial Authority have announced the completion of the first transaction in the pilot phase of the Digital Dirham central bank digital currency, marking a significant milestone since the project started in March this year. The transaction was executed through the government payment platform mBridge, ...
According to reports, the UAE Ministry of Finance and the Dubai Financial Authority have announced the completion of the first transaction in the pilot phase of the Digital Dirham central bank digital currency, marking a significant milestone since the project started in March this year. The transaction was executed through the government payment platform mBridge, signaling a key step for the UAE in applying the national digital currency to government and private sector operations.
Ahmed Ali Meftah, Chief Accountant Executive Director of the Dubai Financial Authority, stated that the transaction aimed to test the technical integration and operational readiness of the central bank system, with the entire process taking less than two minutes, validating the potential of the Digital Dirham in improving settlement efficiency and shortening government payment cycles.
According to a policy document released by the UAE Central Bank in July, the issuance of the Digital Dirham will be phased in, initially only for payment purposes to avoid competing with savings or interest-bearing products. The project is seen as an important move by the UAE Central Bank to address the evolution of the monetary system in the digital economy era.
According to the Atlantic Council, currently only Nigeria, the Bahamas, and Jamaica have officially issued CBDCs, with 49 other countries in the pilot phase.
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Link: UAE Completes First Government-Level Transaction with 'Digital Dirham' CBDC, Testing Takes Less Than Two Minutes [Copy]
