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The Central Bank of the United Arab Emirates (CBUAE) is about to fully launch its central bank digital currency (CBDC) — the digital dirham — for domestic and cross-border payments.
according to According to a March 23 announcement, the CBUAE signed an agreement with Abu Dhabi-based G42 Cloud and digital financial services provider R3 to become the infrastructure and technology provider for the implementation of the CBDC.
In addition to addressing the challenges of domestic and cross-border payments, the central bank said it would also help promote financial inclusion as the country seeks to become a “cashless society”.
Phase 1 of CBDC strategy includes soft launch of ‘mBridge’, CBDC transaction to facilitate international trade, and proof-of-concept work Bilateral CBDC bridge with India, and domestic CBDC issuance for wholesale and retail use. This phase is expected to be completed within the next 12 to 15 months, the announcement said.
in the initial unveiled CBUAE Governor Khaled Mohamed Balama said of the strategy on 12 February:
“The launch of our CBDC strategy marks a critical step in the country’s currency and payments development. A CBDC will accelerate our digitization and boost financial inclusion.”
While the UAE hopes to push the boundaries of CBDC use cases, debate continues over the asset’s viability in the United States.
related: India and UAE explore CBDC bridge to facilitate trade and dollar-free remittances
On March 21, Republican Senator Ted Cruz (Ted Cruz) proposed a bill to prevent The Fed is afraid to issue a “direct-to-consumer” CBDC for fear it could become a tool for espionage.
Meanwhile, a study released by a division of the U.S. Department of the Treasury claims that integrating a CBDC into the economy would would destabilize the banksaying it could cause “significant” harm to the banking sector in times of stress.
On the other hand, Nigeria is Witnessing growing adoption Its eNaira, because banknotes are facing a severe shortage. The total number of CBDC wallets in Nigeria is 13 million, an increase of more than 12 times compared to October 2022.
As of March, 114 countries accounting for more than 95% of global GDP are exploring CBDCs. According to the Atlantic Council, a U.S. think tank, 65 countries are already in the advanced stage.
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