United Arab Emirates Unveils New Dirham Representative and Progresses Digital Money Strategy
The Digital Dirham: Revolutionising UAE's Digital Economy
The United Arab Emirates (UAE) is set to take a significant leap forward in digital payments with the imminent rollout of the Digital Dirham, a blockchain-based payment instrument announced by the Central Bank of the UAE (CBUAE).
The Digital Dirham, expected to be fully rolled out nationwide by late 2025, marks the transition to a fully digital UAE currency. This move is designed to revolutionise how residents and businesses spend, send, and manage money.
The digital wallet, developed by the CBUAE, facilitates various financial activities such as payments, transfers, and redemptions. It also supports smart contracts to automate payments like rent, subscriptions, school fees, and utilities, ensuring payments are made automatically and on time, without manual intervention.
The Digital Dirham is accessible to all residents, eliminating the need for a traditional bank account to use it. This inclusivity aligns with the UAE’s broader digital transformation strategy, emphasising convenience, efficiency, and financial inclusion through blockchain technology.
The platform aims to reduce transaction costs and combat financial crime. It is also designed to ensure flexibility and innovation in the UAE's growing digital economy, supporting emerging digital financial solutions.
The Digital Dirham has already undergone pilot testing, including a landmark cross-border transfer of AED 50 million completed in just 7 seconds, involving China and India. Scheduled for the end of 2025, the Digital Dirham will move from pilot to widespread availability across the UAE.
Khaled Mohamed Balama, Governor of the CBUAE, emphasised that the Digital Dirham will enhance financial stability and inclusion. The Digital Dirham is also expected to provide international market access, further strengthening the UAE's status as a global leader in digital payments.
The UAE continues to position itself as a leader in financial innovation, leveraging technology to drive economic growth and enhance the lives of its citizens. With the Digital Dirham, the UAE is set to lead the way in the adoption of digital currencies, paving the way for a more efficient, inclusive, and secure digital economy.
[1] Central Bank of the UAE (CBUAE) Press Release, "Digital AED: The Future of UAE Currency," 15th April 2021, https://www.cbuae.ae/en/about-us/news-and-media/press-releases/digital-aed-the-future-of-uae-currency
[2] Khaleej Times, "UAE to launch digital currency by 2025," 15th April 2021, https://www.khaleejtimes.com/business/economy/uae-to-launch-digital-currency-by-2025
[3] Gulf News, "UAE to launch digital currency by 2025," 15th April 2021, https://gulfnews.com/business/economy/uae-to-launch-digital-currency-by-2025-1.77863656
Read also:
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Century Lithium Announces Production of Battery-Grade Lithium Metal Anodes from Angel Island Lithium Carbonate
- Truck manufacturers directed to cease enforcing immediate limp mode for low DEF emission regulations, according to EPA.
- Tesla Model Y owner, after traveling 300,000 miles, discloses the impact on the vehicle's battery life
