Beginning with the launch of its digital currency, the digital dirham, the Central Bank of the United Arab Emirates (CBUAE) intends to transform retail and wholesale transactions through a groundbreaking collaboration with industry heavyweights R3 and G42 Cloud, a division of AI powerhouse G42.
Proof-of-concept work for a bilateral CBDC bridge with India a crucial trading partner and domestic CBDC development meeting the needs of wholesale and retail are the next steps. This partnership promises state-of-the-art technology that will transform financial transactions in the United Arab Emirates.
The UAE’s digital currency program is led by R3 and G42 Cloud. The soft launch of Project mBridge, which enables smooth cross-border transactions, is part of the first phase.
With the implementation of CBDC, the CBUAE hopes to address issues with both domestic and international payments, advancing financial inclusion and accelerating the shift to a cashless society.
This project expands on earlier partnerships like Project Aber with the Saudi Central Bank and is in line with its Financial Infrastructure Transformation Programme.
To further demonstrate its dedication to promoting digital innovation in the financial industry, the regulator has also required all UAE-licensed financial institutions to implement the Digital Dirham by 2026.
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